Section 2: Outcomes and outputs information
Outcomes and output groups
The map below shows the relationship between government outcomes and the contributing outputs for the Australian Securities and Investments Commission (ASIC).
Map 2: Outcomes and output groups
Output cost attribution
Each programme of activity (cost centre) in ASIC is linked to one of the four outputs. Accordingly, expenses against these programmes accrue against the outputs as they occur.
Where an expense relates to more than one output, it is allocated using a predetermined formula. For example, property lease overheads are allocated using staff numbers attributed to each programme.
Changes to outcomes and outputs
There are no proposed changes to the outcome or outputs.
Outcome 1 - Description
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers.
Measures affecting Outcome 1
Australian Securities and Investments Commission - corporate disclosure initiatives
The Government will provide the Australian Securities and Investments Commission (ASIC) with funding of $12.3 million over four years for its role in the implementation of Part 9 of the Corporate Law Economic Reform Programme (CLERP 9). Ongoing funding is subject to a review in 2003-04 in light of the findings of the HIH Royal Commission.
Under the CLERP 9 reforms, ASIC will be provided with additional powers to deal with inadequate disclosure. This funding will enable ASIC to conduct surveillance, investigate and take enforcement action in relation to alleged contraventions of these provisions.
Australian Securities and Investments Commission - corporate insolvency initiative
The Government will provide the Australian Securities and Investments Commission (ASIC) with funding of $12.3 million over four years for a programme directed at targeted surveillance of misconduct by company officers in small/medium enterprises (SMEs) and identified high-risk industry sectors. ASIC will increase enforcement work and ASIC-initiated winding up action of SMEs to prevent abuse of the corporate form.
On-going funding will be reviewed in 2003-04 in light of the findings of the Cole Royal Commission.
Australian Securities and Investments Commission - funding for the HIH investigations taskforce
The Government will provide additional funding of $28.2 million over two years to the Australian Securities and Investments Commission (ASIC) to establish a dedicated taskforce to undertake investigations and civil litigation on possible breaches of the Corporations Act 2001 as identified by the HIH Royal Commission.
Funding for the Taskforce will be subject to review by the end of 2003 in light of ASIC caseloads experience during the initial period.
Funding has also been earmarked for possible criminal prosecutions arising from the investigations and/or identified by the HIH Royal Commission.
Superannuation Complaints Tribunal - additional funding
The Government will provide additional funding of $6.3 million over four years to increase the base funding for the Superannuation Complaints Tribunal (SCT) to enable it to meet increasing demands on its services. This would also enable the SCT not to resort to supplementary funding to meet its needs as has been the case to date. The funding will allow the SCT to continue to service current and increasing complaints lodgements, retain technical skills and avoid delays in bringing cases to a conclusion.
See also the related revenue measure titled Superannuation Complaints Tribunal - additional funding in the Treasury portfolio.
Outcome 1 - Resourcing
Table 2.1 shows how the 2003-04 appropriations translate to total resourcing for Outcome 1, including administered expenses, revenues from government (appropriations), revenue from other sources, and the total price of outputs.
Table 2.1: Total resources for Outcome 1
(1) C1, E1 and I1 show the links back to Table 1.1.
Outcome 1 - Contribution of outputs
ASIC has developed a framework to ensure that delivery of specified outputs meets or exceeds anticipated requirements. These outputs reflect the programmes and activities ASIC undertakes as a regulatory authority to meet the objective of Outcome 1.
Through ASIC, the Government seeks to ensure that consumers and investors receive honest and competent financial advice that is untainted by conflicts of interest, and that information about corporations is current and accurate. ASIC also has an enforcement and regulatory role designed to tackle misconduct in order to promote a confident and informed market.
Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1 (continued)
Evaluations
ASIC regularly seeks feedback from consumers, investors and other stakeholders on the effectiveness of policy advice and administration of the law.
The results of ASIC's performance are presented in its Annual Report.
The Government's financial sector reforms are due to be reviewed by the Financial Sector Advisory Council in the 2003-04 financial year.