The head of Australia's corporate regulator says the watchdog will do more to police big business following a funding boost that includes a special prosecutor focused on the financial sector.
The federal government has given the Australian Securities and Investments Commission $127.2 million in new funds to boost its surveillance and enforcement capabilities.
ASIC chairman Greg Medcraft said the regulator will use the boost to target problem areas including financial planning and life insurance, with the funds to increase technological capacity to identify and assess risks and misconduct.
"We've done a lot and now we will do more because we have more money and we have more power," Mr Medcraft said Wednesday.
ASIC will gain a new commissioner with experience in "the prosecution of crimes in the financial services industry", federal Treasurer Scott Morrison said, announcing the funding.
"We want an ASIC that leans forward and we want an ASIC that actually prosecutes and takes those matters up," Mr Morrison said.
The changes at ASIC form the federal government's response to a capability review of the watchdog, commenced by an expert panel in mid-2015, handed up in December and released on Wednesday.
Among its findings, the review found ASIC needed additional support to be "fit for the future" and that material gaps existed in areas including governance, data infrastructure and IT systems.
ASIC has faced criticism of its prosecution record and its handling of recent financial sector scandals, and the new funding came as the federal government fended off calls from Labor for a royal commission into the banking sector.
Mr Medcraft defended the corporate watchdog, saying its recent move to start Federal Court proceedings against Westpac and ANZ for alleged manipulation of a key interest rate showed the regulator was serious about its job.
"There is a tough cop on the beat, and I think I've demonstrated that pretty recently, that I'm willing, we are willing to take any one on, no matter how big you are," he said.
ASIC's $312 million budget will rise by 10.6 per cent with the new funds, to $331.8 million annually over the next four years.
Staff numbers at the regulator will grow by around 150, taking the workforce to 1,850.
The Australian Bankers' Association backed the move to strengthen ASIC, saying "a well-resourced regulator keeps the industry accountable" but the lobby group cautioned against any action that may have "unintended consequences" or impact on product innovation or consumer choice.
Under the package announced on Wednesday, the government will invest $61.1 million to enhance ASIC's data analytics and surveillance capabilities, and data management systems.
ASIC will also receive $57 million for increased surveillance and enforcement in the areas including financial advice, responsible lending and life insurance.
Banks will meet the cost of the additional funds under a user-pays model to be introduced in the second half of 2017.
Mr Medcraft said the user-pays model would make the system more resilient.
The ASIC chairman's five-year term - which was due to expire mid-May - has now been extended for 18 months.
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