ASIC boss Greg Medcraft says the agency needs more money, not a Royal Commission

AS Labor continues to press its case for a banking Royal Commission, ASIC’s chairman says the corporate watchdog could do more if funding cuts were reversed.

Greg Medcraft, Chairman of Australian Securities and Investments Commission appearing at a joint committee on Corporations and Financial Services, at Parliament House in Canberra.

THE head of the Australian Securities and Investments Commission has called on the government to reverse funding cuts so it can step up its surveillance activities.

But Prime Minister Malcolm Turnbull ducked questions today about ASIC chairman Greg Medcraft’s revelation the financial sector watchdog could do more to crack down on corruption if it had more money.

Asked at a press conference in Perth about whether funding cuts would be restored, Mr Turnbull said the government had increased ASIC’s powers.

“We have given our regulators greater tools to deal with wrong doing right across the business sector,” he said.

Prime Minister Malcolm Turnbull during a press conference in Perth today. Picture: AAP Image/Richard Wainwright

Mr Medcraft said the agency was forced to reduce staff because of $120 million budget cuts included in the 2014-15 Budget.

“Where we have had issues such as responsible lending, financial advice and life insurance, there’s three for a start where we could do more surveillance,” he told the ABC.

“We continue to work in the markets area. We could have $350 million, or $450 million to determine the level of surveillance.”

The Opposition announced last week that if elected it would hold a Royal Commission into Australia’s banking sector.

However Mr Medcraft said today he believed the Royal Commission, which would last two years and cost $53 million, was unnecessary.

Federal Leader of the Opposition Bill Shorten (right) and Shadow Treasurer Chris Bowen speak at a press conference in Sydney on Friday. Picture: AAP Image/Mick Tsikas.

Shadow Treasurer Chris Bowen dismissed Mr Medcraft’s comments, saying whether to hold a Royal Commission was “a matter for government”.

“I also think one of the things that the Royal Commission would examine is the power and the ability of the regulators,” he said.

“Mr Turnbull is really suggesting the right way of determining the resourcing and ability of ASIC is to have ASIC conduct an inquiry into themselves?

“That is what a Royal Commission is for.”

Opposition Leader Bill Shorten said Australians wanted a better standard of banking.

“In the last 12 months alone, we have our major banks being investigated for rate rigging, we have the scandalous story of people who buy life insurance and then we find out that people within a bank are working out ways to rip off legitimate life and legitimate beneficiaries and claim of insurance policies,” he said.