The report found that in 2017-18, ASIC raised $1,227 million for the Commonwealth in fees, charges and supervisory cost recovery levies, an increase of 33 per cent from 2016-17.
The increase in revenue relates mainly to the recognition of supervisory levies recoverable from industry for ASIC’s regulation-related costs that commenced in 2017-18, ASIC.
Last financial year (FY16-17), the government received $920 million in fees and charges from ASIC, an increase of 5 per cent from 2015-16.
Also, in 2017-18, ASIC received around $348 million in appropriation revenue from the government, including $26 million for the Enforcement Special Account (ESA), representing a $6 million or 2 per cent increase compared with 2016-17.
The report noted the $6 million increase in appropriation revenue relates mainly to new funding provided to ASIC in 2017-18 for the Hayne royal commission.
Further, ASIC received about $41 million of own-source revenue, 463 per cent higher than the previous year.
“The increase in own-source revenue relates to significant court cost recoveries during the year relating to ESA matters,” ASIC said.
“The increase in expenditure is consistent with the increase in appropriation revenue and represents a general increase in staff and supplier expenditure.”
It’s a very good question.
How can ASIC be an effective regulator and act in the best interest of consumers if the bulk of their revenue comes from the major financial institutions? I know this is a rhetorical question as it is clear from the RC that they have been anything but effective.
It is about time Mr Robert as the Minister responsible review ASIC’s funding model so they can start viewing the banks, etc as the businesses they regulate, not as their paymasters.