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The map on the following page shows the relationship between government outcomes and the contributing outputs for the Australian Securities and Investments Commission (ASIC). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
The activities contributing to each output are detailed below.
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.
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, et cetera.
Compliance checking, surveillance, managing complaints, analysis and targeting.
Investigations, civil and criminal litigation, administrative and banning action.
Chart 6: Outcomes and output groups
There are no proposed changes in outcomes or outputs since the previous year.
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers in the financial system.
Additional funding of $5 million over two years will be provided to Australian Securities and Investments Commission to assist it with its investigation of the HIH Insurance Group, and any resulting prosecutions. This additional funding will supplement the Commission's existing enforcement budget, and not act as an upper limit.
The Government has provided Australian Securities and Investments Commission with transitional funding of $2.6 million to enable it to prepare for the implementation of the major reforms to the regulation of financial products, service providers, intermediaries and markets announced as part of the Corporate Law Economic Reform Programme. The reform programme will provide for a single, harmonised licensing and product disclosure framework.
The Government will extend Managed Investments transitional funding for one year by $2.9 million. This will allow Australian Securities and Investments Commission (ASIC) to maintain an enhanced level of regulation of managed investment funds while a review is undertaken of the Managed Investments Act 1998 during 2001-02. The Managed Investments Act 1998 provides an enhanced regime for managed investments, which includes their licensing and involves ASIC monitoring their operations, investigating and taking action in the event of a breach of law.
The Government has increased the ongoing level of funding for the Superannuation Complaints Tribunal (SCT) by $0.7 million per annum to restore its determinative role in resolving disputes between superannuation fund members and the funds. Funding for the SCT was reduced in 1998-99 following Federal Court judgements in 1997 and 1998 curtailing the tribunal's functions. The High Court restored full powers to the tribunal on 17 June 1999.
See also the related revenue measure Superannuation Complaints Tribunal in the Treasury portfolio.
Table 2.1 shows how the 2001-02 appropriation and programme structure relates to total resourcing for Outcome 1.
Table 2.1: Total resources for Outcome 1
(1) C1, E1 and I1 - see Table 1.1.
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 these 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 ASIC strives for:
Table 2.2: Performance information for Outcome 1
Output Group 1.1 - Australian Securities and Investments Commission | |
Output 1.1.1 - Policy and guidance about the laws administered by ASIC |
In financial year 2001-02, ASIC will measure:
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Output 1.1.2 - Comprehensive and accurate information on companies and corporate activity |
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Output 1.1.3 - Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity |
ASIC's objective is to focus compliance activities on specific patterns, problems or risk areas and to respond to these problems with integrated national campaigns that use a range of regulatory tools. Generic performance indicators are not appropriate for this approach. Specific indicators will be developed for each campaign. In addition the following measures apply:
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Output 1.1.4 - Enforcement activity to give effect to the laws administered by ASIC |
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ASIC's new regulatory system will be subject to a review after five years by the Financial Sector Advisory Council. ASIC was established on 1 July 1998.
Information on evaluation activity that relates to this outcome is included in Table 2.2 above and the results will be shown in ASIC's Annual Report.
ASIC is in the process of developing other IT outsourcing strategies following the Government's decision to allow agencies to determine the scope of their respective IT outsourcing strategies.