16 December 2016
Sydney, 16 December 2016: The Australian Bankers’ Association has lodged its submission on the revised proposal for an industry funding model for the Australian Securities and Investments Commission.
“The ABA supports an industry funding model for ASIC to help keep the regulator well-resourced and effective,” ABA Chief Economist Tony Pearson said.
“Supporting a strong regulator was one of the banking industry’s reforms announced this year to better protect customers.
“We are pleased that the revised model has addressed most of our concerns with the initial proposal.
“For example there is better alignment of fees and levies to where the regulator directs most of its efforts. This will ensure that all participants contribute according to the regulatory oversight they require,” he said.
The submission also outlines the industry’s concerns with the complexity of the model and how fees will be charged.
“The model remains complicated and will cause difficulty for some banks to know exactly how much they will contribute,” Mr Pearson said.
“There is potential for a significant reporting burden, and the ABA would welcome the opportunity to work with the Federal Government on how this could be reduced.”
A copy of the submission is available on the ABA website.
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”
“What is underpinning this bank failure is a number of things, but not least of all, it’s a very niche bank with high exposure to one part of the economy. And that’s the part of the economy that’s been quite volatile and troubled”
The Treasurer has indicated that the federal government is closely monitoring the situation.