Australian Securities and Investments Commission (ASIC) chairman Greg Medcraft told a parliamentary committee on Friday that the regulator has rarely had been able to recover its investigation expenses and costs.
“However, ASIC has reviewed its approach and consistent with User Pays principles, considers it should more frequently seek to recover the costs of an investigation from those that have caused those costs to be incurred,” he said.
Medcraft said the new approach will apply to investigations from 29 July 2015 as well as all investigations started before this date.
Ongoing ASIC’s investigations currently cover the Commonwealth Bank, Westpac, the National Australia Bank, the ANZ Bank, AMP, Macquarie Group and IOOF Holdings, who could all potentially be facing higher penalties as a result.
“I think this sends a price signal to the market not to obstruct or delay us and should result in quicker and less costly investigations,” Medcraft told the committee.
