ASIC chair Greg Medcraft says funding will boost surveillance powers

Greg Medcraft has encouraged the government to reverse cuts to the corporate watchdog as a wave of conduct breaches within the banks culminated in calls from the Labor to hold a Royal Commission to the financial sector.

Medcraft, whose term as chair of the Australian Securities and Investment Commission expires in a month, refused to be drawn into the debate around the Royal Commission into banking was a "matter for government."

Determining the resilience of the financial system was also a 'matter for government', he said. Boosting ASIC's budget would allow it can undertake more 'proactive surveillance'.

"We can't burn every street corner looking over every shoulder. Its up to the gatekeepers to take care of their culture so we don't get the wrong outcomes," Mr Medcraft said in a radio interview with ABC's Fran Kelly about the impact of $120 million of cuts to ASIC's budget.

Greg Medcraft wants ASIC's funding to go up.Credit: Christopher Pearce

"We are a law enforcement body and the key to it is that at one point they may one day get a call from ASIC. What the cuts mean is we see less people, less than we would have," he said.

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

Labor's calls for a Royal Commission last week were rejected by Prime Minister Malcolm Turnbull who said ASIC's powers were already sufficient.

Medcraft said there were 'very good recommendations' to come out of the Murray led Financial Systems Inquiry in relation to ASIC, such as product intervention powers, reviewing penalties and a 'user pays' funding model.

ASIC has itself been the subject of several reviews into its performance and capabilities. Mr Medcraft said the corporate watchdog had become more 'transparent' while the need for better whistleblower protection was highlighted.

He also told the ABC he was confident that the cases brought against Westpac and ANZ for alleged manipulation of the bank bill swap rate would succeed.

"We don't take on these cases lightly but its about reassuring Australians that nobody is beyond the law."

"We win 95 per cent of our cases. What defines you as a law enforcement agency is willing to take on the battle on the advice you have and to back the team that has done the work. We are not running away from the fight. I'd rather not have a fight. Unfortunately we are going to have to go to court," he said.

Mr Medcraft also said he was seeking reappointment in his role as ASIC chair and was reported to have been in the running for the equivalent position in the United Kingdom to head up the Financial Conduct Authority.

"I want to continue on with the job. It's a matter for government. I am focused on the next four weeks and we're very busy over the next four weeks."