Budget 2009 10: Legal issues and
the Attorney-General's portfolio
Australian Securities and Investments Commission and financial
regulation
PaoYi Tan
Kali Sanyal
The 2009–10 Budget allocates $63.2 million over four
years to the Australian Securities and Investments Commission
(ASIC) to meet the costs of additional specialists and staff, legal
and forensic resources, and support for three new Commissioners
recently appointed to ASIC.[1]
ASIC staff numbers are set to grow by 174 in the 2009–10
financial year, bringing staff numbers from 1806 to 1980.[2] This signifies the
largest staff increase of any organisation or body under the
Treasury portfolio for 2009–10.
The increase in staff numbers (and increased monitoring and
enforcement activities) can be largely attributed to a recent
structural makeover of the organisation, the result of a strategic
review of ASIC undertaken in 2008. ASIC’s new structure
became operational on 1 September 2008. The Chairman of ASIC,
Mr Tony D’Aloisio, described the key differences that the
restructure aimed to achieve:
- Clearer vision against which ASIC tests and explains its’
intervention or commencement of proceedings
- Clearer priorities which are framed more narrowly around issues
of importance (for instance, capital markets and market integrity,
retail investors, financial consumers and global capital flows),
and
- Greater investment in the development of staff, and an
increased number of leaders to take on responsibilities. [3]
Staffing increases are attributable to a several notable
changes, such as:
- Support staff required for the new Commissioners which were
appointed to ASIC in December 2008, bringing the number of
Commissioners to six. The increase in the size of the Commission
was designed to ensure ASIC remains best placed to deal with the
fallout from the global financial crisis and its new role as the
national consumer credit regulator.[4]
- Increased resources towards regulation of exchange-traded
products and markets.[5]
- The creation of a new structure that is outwardly market
focused—12 stakeholder teams (industry based) and eight
deterrence (enforcement) teams.[6]
Additionally, ASIC will require resources and staffing for the
anticipated Commonwealth takeover of the national consumer credit
regulatory regime. The transfer of consumer credit responsibilities
from the States to the Commonwealth arose from an agreement of the
Council of Australian Governments (COAG).[7] The legislation enabling this, the
National Consumer Credit Protection Bill 2009, is due for
introduction into Parliament in the 2009 winter sitting period.
Under the proposed new consumer credit regime, ASIC will be
responsible for licensing and supervision of the consumer credit
industry.[8]
[1].
Australian Government, Budget measures: budget paper no. 2:
2009-10, Commonwealth of Australia, Canberra, 2009, p. 379,
viewed 18 May 2009, http://www.budget.gov.au/2009-10/content/bp2/html/index.htm
[2].
Australian Government, Budget strategy and outlook: budget
paper: no. 1: 2009–10, Commonwealth of Australia,
Canberra, 2009, p. 6–70, viewed 18 May 2009,
http://www.budget.gov.au/2009-10/content/bp1/html/index.htm
[3].
T D’Aloisio (Chairman, Australian Securities and Investments
Commission), The new ASIC: addressing today’s challenges
and building for the longer term, Speech, 7 November 2008, p.
6, viewed 15 May 2009,
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/
new-asic-7-11-2008-ACLA.pdf/$file/new-asic-7-11-2008-ACLA.pdf
[4]. N Sherry (Minister for
Superannuation and Corporate Law), New commissioners appointed
to the Australian Securities and Investments Commission, media
release, 15 December 2008, viewed 15 May 2009
http://www.treasurer.gov.au/DisplayDocs.aspx?
doc=pressreleases/2008/094.htm&pageID=003&min=njs&Year=&DocType
[5].
Australian Government, Portfolio budget statements
2009–10: budget related paper no. 1.17: Treasury
Portfolio, Commonwealth of Australia, Canberra, 2009, p. 162,
viewed 18 May 2009,
http://www.treasury.gov.au/documents/1539/PDF/
Treasury_portfolio_budget_statements_2009_10.pdf
[6].
T D’Aloisio, The new ASIC, p. 6.
[7].
Council of Australian Governments, Meeting, 2 October 2008,
Communiqué, viewed 18 May 2009,
http://www.coag.gov.au/coag_meeting_outcomes/2008-10-02/index.cfm
[8].
N Sherry (Minister for Superannuation and Corporate Law),
Australia to get world-leading credit licensing regime,
media release, 27 April 2009, viewed 15 May 2009
http://parlinfo.aph.gov.au/parlInfo/search/display/
display.w3p;query=Id%3A%22media%2Fpressrel%2F7GGT6%22
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