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ASIC has called for financial services professionals to pay for its regulatory services and has also urged the government to introduce harsher penalties for white-collar crime.
Chairman Greg Medcraft told the National Press Club of Australia yesterday that it was important to apply a "price signal" for the cost of ASIC's oversight.
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"To provide this, ASIC should have a user-pays funding model. Such a model would provide economic incentives to drive the regulatory outcomes set by government," he said.
"A user-pays system would mean participants in our financial system need to pay for ASIC's overview, based on a system of levies and fees. Those industries needing the most attention would pay the most."
The regulator devotes 70 per cent of its budget to surveillance and enforcement, according to Mr Medcraft.
Mr Medcraft also called for harsher penalties for white-collar crime, noting that Australia was out of line with most international jurisdictions.
"Everyone knows that when someone is thinking of breaking the law, the possibility of getting caught and facing jail or a massive fine is a big deterrent," he said.
"Breaking the law in the financial sector seems to be a trade-off between fear and greed. So, Australia needs penalties that amplify the fear and supress the greed.
"Australia needs penalties that will scare the pants off people. My message to potential law breakers is simple – don't even think about breaking the law. ASIC is watching. And we will act."
[Related: ASIC slaps director with 10-year ban]
