The government has announced that more than $51 million will be allocated to pursue criminal prosecutions for financial misconduct.
Treasurer Josh Frydenberg announced that the fund would also be used to ensure civil claims against the banks were dealt with more efficiently.
The fund comes just before round seven of the royal commission hearings as the government anticipates a rise in claims against the banks exposed by the commission.
The Treasurer said the fund would be able to implement the findings of the commission and also act as a deterrent to misconduct in the financial services.
Mr Frydenberg said regulators like ASIC and APRA needed to be given all the resources necessary to prosecute and ensure that people are prosecuted to the full extent of the law.
The fund is specifically for the legal costs of the regulators to be able to compete against the banks who are able to fund their own legal costs.
Mr Frydenberg said this was the latest measure by the government to pursue financial misconduct in the industry.
The government has previously announced over $58 million in APRA funding, the creation of AFCA for consumers and stronger powers to the regulators to pursue misconduct.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
What does it take to properly service Millennial clients in a digital-first worl...
The prudential regulator has warned that “the viability of life insurance thro...
There were positive signs for the advice industry as February came to a close, w...