Australia needs tougher penalties for white-collar crime, Australian Securities and Investments Commission (ASIC) Chairman Greg Medcraft told the regulator’s annual forum today.

He says this would provide the “right nudge”, injecting enough fear to stop people breaking the law.

ASIC also wants a user-pays funding model for regulation that gives market participants a price signal and an incentive to meet outcomes the Federal Government expects.

“Under a user-pays system, those industries needing the most attention would pay the most,” Mr Medcraft said.

He says cybercrime is a key risk in the digital age, and businesses must be cyber-resilient.

“Boards should also be aware of cyber risk as part of their risk oversight role.”

Mr Medcraft says the regulator will set up an innovation hub next financial year, to streamline common application processes and give innovative businesses a dedicated ASIC contact.