Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Underfunded regulator to hunt credit reps

ASIC’s $120 million funding cut will see the corporate watchdog further pursue credit reps rather than licensees, according to QED Risk Services.

Speaking at a non-bank panel during last week's MFAA convention on the Gold Coast, QED Risk Services director Greg Ashe said it is a common myth that ASIC targets licensees.

“It’s not licensees they are after; its industry participants that they look at,” Mr Ashe said. “If you’re merely a credit rep and you do something wrong to a consumer, ASIC will come after you.

Advertisement
Advertisement

“They are not going to come after your licensee first, they will come after the credit rep first.”

Mr Ashe said another common misconception is that ASIC is entirely taxpayer-funded.

“ASIC is mostly industry-funded,” he said. “They get most of their money by charging brokers an annual licensing fee, by charging the banks their licensing fee.”

The corporate regulator has been instructed to "adjust its priorities" as the federal government withdraws $120 million in funding over the next five years.

In the federal Budget handed down last week, the government indicated it would achieve $120.1 million in savings over five years by reducing funding to ASIC – starting with a reduction of $26 million in 2014/2015.

"ASIC will adjust its priorities to ensure it continues to meet its statutory objectives," the Budget papers stated.

"The savings from this measure will be redirected by the government to repair the Budget and fund policy priorities."

ASIC's average staffing level for 2014/2015 is estimated to be reduced by 209 from 2013/2014 levels, falling from 1,782 to 1,573.

“They didn’t have much of a budget anyway,” QED’s Mr Ashe said. “They are severely underfunded.”

 

Underfunded regulator to hunt credit reps
mortgagebusiness

Latest News

The federal government has committed an extra $15.6 billion into the JobKeeper scheme and will revise eligibility requirements, given the ec...

The government has confirmed that HomeBuilder participants in Victoria will be given more time to commence residential construction. ...

A trident of developments over the coming months are set to “test” the resilience of the residential property market and threaten to dee...

FROM THE WEB
podcast

LATEST PODCAST: Further price moderations as lockdowns tighten in Victoria

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.