Document Index Portfolio Budget Statements Australian Securities and Investments Commission

Section 2: Outcomes and Outputs Information

• Outcomes and Output Groups
• Outcome 1
• Measures in the 1999-2000 Budget
  • Corporate Law Economic Reform Program -- Expense
    • Budget Measure Purpose
• Resources for Outcome 1
• Contribution of Outputs to Outcome 1
• Performance Information for Outcome 1
  • Evaluations
  • Competitive Tendering and Contracting

OUTCOMES AND OUTPUT GROUPS

The map on the following page shows the relationship between Government outcomes and the contributing outputs for the Australian Securities and Investments Commission. Financial detail for Outcome 1 by output appears in Table 2.2 while non-financial information for Outcome 1 appears in Table 2.3.

The activities contributing to each output include:

Policy and guidance about the laws administered by ASIC

• The design and drafting of policy statements, practice notes, guidance documents, class orders, applications for relief and modifications to the law, and all education and liaison activities.

Comprehensive and accurate information on companies and corporate activity

• All document registration and associated functions -- ranging from annual returns, changes of directors, and substantial shareholder notices, to prospectuses and Part A or Part C statements of the Corporations Law -- as well as the `consequential' activities accompanying such registration, such as penalties, etc.
  
• Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity.
  
• Compliance checking, surveillance, managing complaints, analysis and targeting.
  
• Enforcement activity to give effect to the laws administered by ASIC.
  
• Investigations, civil and criminal litigation, administrative and banning action.

	Australian Securities and Investments Commission Chairperson: Mr Alan Cameron
	Overall Outcome Strong, sustainable economic growth and the improved wellbeing of Australians
	Outcome 1 A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers Total Price of Outputs: $137.163 million Agency Outcomes Appropriation: $132.078 million
	Output Group 1.1 Australian Securities and Investments Commission
Output 1.1.1 Policy and guidance about the laws administered by ASIC		Output 1.1.2 Comprehensive and accurate information on companies and corporate activity		Output 1.1.3 Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity		Output 1.1.4 Enforcement activity to give effect to the laws administered by ASIC

OUTCOME 1

A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers.

Table 2.1 shows the relationship between the programme structure for 1998-99 and the new outcome structure for the 1999-2000 Budget for Outcome 1.

Table 2.1: Relationship between Programme and Outcome Structure for Outcome 1

MEASURES IN THE 1999-2000 BUDGET

Corporate Law Economic Reform Program -- Expense

Budget Measure Purpose

This measure will assist the Australian Securities and Investments Commission (ASIC) to develop and implement proposals under the second phase of the Government's Corporate Law Economic Reform Program (CLERP). This phase (CLERP 7) will focus on reducing the paper compliance burden of Australian companies and enabling ASIC to make greater use of communications technology. It will also look at a fundamental overhaul and review of the large range of paper-based documents that the law still requires companies to lodge.

The key reforms to be introduced under CLERP 7 include:

• the establishment of a Business Advisory Board to provide strategic advice on the direction and initiatives of the ASIC Information Division;
  
• the introduction of a `no change, no lodge' policy which will provide that, from 1999-2000, companies and registered schemes will not need to lodge an annual return when there has been no change in the information held by ASIC;
  
• a review of fees set under the Corporations Law with the objective of reducing fees paid by small business and reducing the complexity of fee arrangements; and
  
• initiatives to assist ASIC in making optimal use of modern business practices and new communications technology.

RESOURCES FOR OUTCOME 1

Table 2.2 shows how the 1998-99 appropriation and programming structure relates to total resourcing for Outcome 1.

Table 2.2: Total Resources for Outcome

(a) See Table 2.1 for details.

CONTRIBUTION OF OUTPUTS TO OUTCOME 1

The outputs reflect the programmes and activity that ASIC undertakes in fulfilling its function as a government regulatory authority and are essential for the achievement of the Government's outcome.

The Government seeks to ensure that consumers are adequately informed about the financial market and adequately protected from investing in improper and unfair financial products. To achieve this ASIC aims to reduce fraud and unfair practices in financial markets and financial products so consumers use them confidently and companies and markets perform effectively.

In carrying out its responsibilities the Commission strives for:

• high quality regulation at a reasonable cost to the market; and
  
• responsive, intelligent and consistent customer service, clearly communicated and with a strong educative role.

PERFORMANCE INFORMATION FOR OUTCOME 1

Evaluations

ASIC's new regulatory system will be subject to a review after five years by the Financial Sector advisory Council.

Information on evaluation activity that relates to this outcome is included in Table 2.3 above and the results will be shown in ASIC's Annual Report.

Competitive Tendering and Contracting

ASIC plans to outsource its staff recruitment function in the 1999-2000 financial year. Evaluations are also being undertaken to assess the feasibility of outsourcing other areas of non-core activity in the near future. These non-core activities include, travel management and property management.