Duties Of A Senator

ASIC jobs cut as responsibilities rise

The Australian Securities and Investments Commission has axed 59 jobs in the year to May as part of 87 redundancies with a further 68 to go this financial year as part of a $10 million budget cut to the corporate watchdog, dependant on a funding review.

ASIC's budget has fallen to $350 million for the 2011-12 financial year, subject to a funding review, ASIC chairman Greg Medcraft told a Senate Estimates hearing.

As a result, 155 jobs need to be cut.

The 87 staff that have been given redundancies in the year to May go towards making the total, ASIC told Financial Standard.

There were 59 staff cut from a deterrence team of 200 to 300 members at a cost of $3.15 million. ASIC has a total headcount of 1850 people.

In a response to a question on notice from Shadow Minister for Financial Services Senator Mathias Cormann, Medcraft confirmed that 43 of those staff took voluntary redundancies while 16 were forced.

Medcraft said further redundancies were expected over the next three years, depending on the outcome of the ASIC Funding Review being conducted with Treasury and the Department of Finance and Deregulation.

At the same time ASICs regulatory duties have increased as it now patrols the Australian Stock Exchange - a segment set to fragment with the introduction of dark pools and newcomer Chi-X.

It has hired 35 staff from the ASX for this purpose, ASIC said.

A report by Thomson-Reuters noted that ASIC would be hampered by risks and potential costs from instigating civil penalty proceedings against those who breach the rules and would prefer infringement notices and enforceable undertakings.

Sydney University Associate Professor of law Joanna Bird, said all regulatory organisations needed to live within their means and that ASIC could do an effective job on its budget.

Bird, a former head of ASIC's strategic policy area, said it uses many tools at its disposal such as educating the market, persuading people to comply, bringing targeted enforcement actions, on-site surveillance searches as well as removing licenses and setting license conditions.

Bird said ASIC has a huge responsibility compared to other regulators around the world, doing everything from consumer credit to licensing of liquidators.

It brings in revenues from fees and charges alone of $550 million, which goes to Government revenue, and it depends on Government funding for its budget.

Bird said if ASIC was funded by its own industry levies, like the UK's Financial Services Authority, it would have a more stable funding source which would possibly enhance its independence.

Saraki denies staying in Govt House, offers to help rainstorm ...

FORMER Kwara State Governor Bukola Saraki says it is not true that he has continued to stay in the Government House two months after he left office.

Saraki, who is now a Senator, said yesterday that what the public was being fed with by the opposition in the state was far from the truth.

In a statement yesterday, Saraki’s Chief Press Secretary, Alhaji Mas’ud Adebimpe, said the “baseless allegation and the controversy concocted around it were the handiwork of the Action Congress of Nigeria (ACN), a party that thrives on outright mischief and cheap propaganda. We do not wish to be drawn into ACN’s attention-seeking gambit and increasing obsession with petty politics. This statement, however, is for the purposes of setting the record straight and guiding unsuspecting members of the public.”

Saraki said since he handed over power to Governor Abdulfatah Ahmed on 29 May 2011, he left Ilorin that same day, and had since relocated to Abuja to undertake his responsibilities as the Senator representing Kwara Central Senatorial District in the Upper House.

“As part of his legislative duties, Dr. Saraki has had occasions to visit his constituents after his relocation to Abuja. He has also had occasions to visit his successor at the Government House in Ilorin and has had the honour of being hosted there for meetings. Except in the wild and mischievous imagination of ACN and its puerile propagandists, we wonder how this amounts to residing or staying in the Government House,” Adebimpe said.

Meanwhile, Saraki has pledged prompt assistance for victims of the recent rainstorm in Oko Erin area of Ilorin, the state capital.

He spoke yesterday during an inspection of the affected areas. The lawmaker commiserated with the victims, mostly the aged, and assured them of immediate help.

In all, 37 houses were affected during the 30 minutes heavy downpour on Monday, July 18 this year.

The worst hit areas are Imam Osere Compound, Idi Opobi, Alangua Compound, Alangua Oko Erin Central Mosque, Gada Jooro, and Ayetoro Baba Agbo Area. Besides, the affected areas have been thrown into total darkness due to the destruction of electricity facilities by the storm.

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