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Section 2: Outcomes and Outputs Information
Outcomes and Output Groups
The map on the following page shows the relationship between Government outcomes and the contributing outputs for the Australian Securities and Investments Commission (ASIC). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
The activities contributing to each output include:
Policy and guidance about the laws administered by ASIC:
- The design and drafting of policy statements, practice notes, guidance documents, class orders, applications for relief and modifications to the law, and all education and liaison activities.
Comprehensive and accurate information on companies and corporate activity:
- All document registration and associated functions - ranging from annual returns, changes of directors, and substantial shareholder notices, to prospectuses and Part A or Part C statements of the Corporations Law - as well as the `consequential' activities accompanying such registration, such as penalties, etc.
Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity:
- Compliance checking, surveillance, managing complaints, analysis and targeting.
Enforcement activity to give effect to the laws administered by ASIC:
- Investigations, civil and criminal litigation, administrative and banning action.
Changes to Outcomes and Outputs
There are no proposed changes in outcomes or outputs since the previous year.
Outcome 1
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers
Measures Affecting Outcome 1
Continuation of managed investments regulation
The Government will provide the Australian Securities and Investments Commission (ASIC) with funding in 2000-01 so it can continue to monitor and regulate managed investment funds. This will enable ASIC to promote and maintain high standards of disclosure and compliance in the managed investments industry. Ongoing funding is pending the outcome of a review of the Managed Investments Act 1998 by a Parliamentary committee in 2000-01.
The Managed Investments Act 1998 established a new regime for the regulation and structure of managed investment schemes, such as unit trusts. Resources were allocated to ASIC in the 1998-99 Budget to fund the establishment of the regime and the initial registration and licensing of the schemes in existence at that time during a two year transitional period.
Transfer of responsibility for unclaimed moneys from the States and Territories to the Commonwealth
The Government will provide the Australian Securities and Investments Commission (ASIC) with funding to administer unclaimed moneys from non-bank Authorised Deposit-taking Institutions.
The figures shown in Table 1.2 include provision for the refund of unclaimed moneys, administered through the Banking Act 1959.
The Commonwealth, through ASIC, will now administer the unclaimed moneys from non-bank Authorised Deposit-taking Institutions. With the proclamation of the Financial Sector Reform (Amendments and Transitional Provisions) Act 1999, this administrative function has been transferred from the States and Territories to the Commonwealth of Australia.
By consolidating the administration of unclaimed moneys for all financial institutions with ASIC, depositors will now only have to deal with one agency.
Resources for Outcome 1
Table 2.1 shows how the 2000-01 appropriation and program structure relates to total resourcing for Outcome 1.
Table 2.1: Total Resources for Outcome 1 ($'000)
Outcome 1 - Contribution of Outputs
The outputs reflect the programmes and activity that ASIC undertakes in fulfilling its function as a government regulatory authority and are essential for the achievement of the Government's outcome.
The Government seeks to ensure that consumers are adequately informed about the financial market and adequately protected from investing in improper and unfair financial products. To achieve this ASIC aims to reduce fraud and unfair practices in financial markets and financial products so consumers use them confidently and companies and markets perform effectively.
In carrying out its responsibilities the Commission strives for:
- high quality regulation at a reasonable cost to the market; and
- responsive, intelligent and consistent customer service, clearly communicated and with a strong educative role.
Performance Information for Outcome 1
Table 2.2: Performance Information 2000-01
Performance information for agency outputs
Output Group 1.1 - Australian Securities and Investments Commission
Output 1.1.1 - Policy and guidance about the laws administered by ASIC.
In financial year 2000-01, ASIC will measure:
The extent to which policy and processes associated with new law are in place;
The extent to which consumers, investors and other stakeholders are consulted during policy formulation;
Infoline calls resolved during first call; and
Complaints to ASIC dealt within 28 days.
Output 1.1.2 - Comprehensive and accurate information on companies and corporate activity.
Annual returns lodged electronically;
Searches conducted on-line; and
Company information lodged on time.
Output 1.1.3 - Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity.
ASIC's objective is to focus compliance activities on specific patterns, problems or risk areas and to respond to these problems with integrated national campaigns that use a range of regulatory tools. Generic performance indicators are not appropriate for this approach. Specific indicators will be developed for each campaign.
In addition the following measures apply:
Final securities industry licences issued within 60 business days of application;
Managed investment licence application - letter of offer/refusal sent within 30 business days; and
Managed investment scheme registration - schemes registered within 10 business days (legislative timing 14 days).
Output 1.1.4 - Enforcement activity to give effect to the laws administered by ASIC.
Investigations finalised within 12 months of resourcing.
Evaluations
ASIC's new regulatory system will be subject to a review after five years by the Financial Sector Advisory Council.
Information on evaluation activity that relates to this outcome is included in Table 2.2 above and the results will be shown in ASIC's Annual Report.
Competitive Tendering and Contracting
ASIC is in the process of testing the outsourcing of its Information Technology function in accordance with Government policy.
