On the release of the interim report from the banking Royal Commission, Josh Frydenberg has hit the airwaves to slam ASIC. He must think we have very short memories.
When Tony Abbott cut $120 million from the ASIC budget in 2014, ASIC Chairman, Mr Greg Medcraft, issued a statement saying staffing levels would have to be cut by over 200 and that “our proactive surveillance will substantially reduce across the sectors we regulate, and in some cases stop.”
In 2016, Scott Morrison announced reforms to shift the regulator to a “user-pays” funding model – in which the institutions it regulates are forced to pay for the ongoing cost of their regulation – so taxpayers no longer have to fund its operations.
The user-pays model was slated to begin operation at the start of the 2017-18 financial year, but little detail has been provided by the government to explain how it will work.
Morrison said if the regulator required any extra money in the future, it could claim more money from Australia’s banks.
Then, in May this year, Morrison cut another $26 million from ASIC.