The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have received additional funding in the Federal Budget as the Federal Government strengthens the roles of the financial watchdogs.

ASIC received funding of $234.6 million over four years. Chairman Jeffrey Lucy says the money will allow the regulator to establish a new electronic registration system for company charges, enhance IT security and develop a presence in non-exchange market trading

Included in the additional funding is a special account of $30 million a year ($120 million over four years) for ASIC to fund enforcement activities associated with the “investigation and litigation of exceptional matters of public interest”.

These funds are intended to be used by ASIC once the cost of an individual enforcement action exceeds $1.5 million.

APRA’s funding will be increased by $8 million over four years “to contribute to financial sector stability and improve the availability of information relating to the insurance sector”.

The prudential regulator will receive additional funding of $3.7 million from 2006/07 for a program designed to address the HIH Royal Commission’s findings and deal with resulting appeals.

APRA will also receive $4.3 million from 2006/07 for the National Claims and Policies Database, which compiles detailed information on the insurance industry.

The Australian Competition and Consumer Commission is also in the money. Its increased allocation of $115.3 million over four years includes $900,000 to help the watchdog monitor medical indemnity insurance premiums.