ASIC needs more funding, says IMF
THE corporate watchdog needs more funding to properly supervise financial advisers and markets, catch criminals and prevent market meltdowns, according to the International Monetary Fund.
It said the Australian Securities and Investments Commission was also at risk of becoming isolated from foreign counterparts unless the government amended laws so it could share data more easily.
The government has called the IMF's assessment ''tough, but fair'', but did not promise more funding. It dismissed concerns that the minister responsible for the regulator, parliamentary secretary to the Treasurer Bernie Ripoll, can interfere with ASIC.
''The minister's power to issue a direction to ASIC … is limited and has only been exercised once and then some 20 years ago,'' the official response said.
The review found Australia's financial regulators had a ''high level of compliance'' with international rules and had improved their reputation through successful high-profile prosecutions. But ASIC needed to maintain its focus on systemic risks and watch for new risks from areas ''that have traditionally been considered of low risk''.
Read more at Brisbanetimes.com.au