Yahoo Finance Corporate cops receive extra $51.5m to fight dodgy banks
The Federal Government has announced an additional $51.5 million in funding will be injected into the corporate regulators to respond to financial crime in force following the Royal Commission’s disturbing revelations.
The money will be used to fund litigation against financial services sector miscreants and to ensure civil claims against financial services sector participants can be “dealt with more efficiently”, Treasurer Josh Frydenberg told Sunrise this morning.
“This [funding] will be to implement the findings of the Royal Commission but also to ensure we get better conduct and better compliance from those working in the financial services sector because as you know, the Royal Commission was pretty scathing about what they saw,” Frydenberg said.
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“We need to ensure that those regulatory agencies have the resources necessary to prosecute and to litigate and ensure people face the full force of the law.”
The Commonwealth Director of Public Prosecutions (CDPP) will receive an additional $41.6 million over the next eight years, while the Federal Court will receive $9.9 million over four years.
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However, the funding won’t extend to individual cases and complaints. Frydenberg said the recently established Australian Financial Complaints Authority will instead assist individuals with claims.
“This is about funding the legal costs so that the relevant agencies, be they ASIC or the CDPP can ensure that those who are engaged in misconduct face the right penalties and sanctions.
“As you know, the banks are able to fund their own legal cases so we need the government to be able to fund its own response.”
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