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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Federal budget 2018: ASIC's shock $26m budget cut. ASIC DOES NOTHING!

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Federal budget 2018: ASIC's shock $26m budget cut

Australian Financial ReviewMay 9 2018 11:00 PM

Patrick Durkin

 

EXCLUSIVE  The corporate regulator's permanent funding will be cut from $346 million to $320 million and staff numbers slashed by 30 investigators, in a unheralded budget cut described as shocking by insiders as the Hayne royal commission adds to the regulator's workload.

Tuesday's budget also includes cuts for the Office of the Director of Public Prosecutions - from $77.4 million to $73.75 million in two years - and for the Australian Federal Police from $1.03 billion to $926 million in four years.

Labor MP Matt Keogh said the cuts prove Treasurer Scott Morrison is "all bark and no bite" when it comes to fighting corporate crime. Mr Keogh said the cuts amounted to a 23 per cent reduction in staff at the DPP from 2010.

Mr Keogh said the agency cuts were separate to and failed to offset $10.6 million provided to ASIC over two years and $2.7 million to the prudential regulator, which were loudly flagged in the budget to assist the Hayne royal commission. The budget also dedicated $6 million for cash economy prosecutions with no funding provided for any cases arising out of the royal commission.

The budget bombshell - discovered by The Australian Financial Review buried  in the Treasury Department's accounts for the Australian Securities and Investments Commission, among a host of other obscure budget papers - is a slap in the face to newly installed chairman James Shipton who will see his war chest shrink by $26 million within three years and be forced to cut his staff by 30 by next year.

'Tough cop' super busy

The major funding cut - which takes ASIC's budget to $320 million by 2020-21 - comes just two years after Mr Morrison injected ASIC with $121 million to boost their resources to ensure it would be a "tough cop on the beat" and attempt to see off a royal commission into the banks.

"The Treasurer is all bark and no bite when it comes to making sure our white collar agencies are fighting corporate crime arising from misconduct by our financial services organisations," Mr Keogh, a former federal prosecutor told The Australian Financial Review.

"You have got to contrast these cuts against the comments of Mr Morrison last week that they would go after big scalps arising out of APRA's CBA report and the royal commission," he said.

The government said the cost of the additional funding for the regulators to assist the royal commission measures would be offset by an increase in the supervisory levies paid by business.

Insiders said that both ASIC and the prosecutor's office workload are likely to ramp-up significantly in the wake of the royal commission.

AMP, Hayne, BBSW

Commissioner Kenneth Hayne was invited last month to find that AMP broke the law on multiple occasions by charging fees for no service, lying about it and then presenting the regulator with a doctored report in findings.

AMP is also facing four potential shareholder class actions, likely to involve ASIC, with Quinn Emanuel Urquhart & Sullivan filing their class action in the Supreme Court of NSW on Wednesday after AMP lost $2 billion following admissions at the commission, ahead of AMP's AGM on Thursday.

ASIC also had a significant win on Wednesday when the Commonwealth Bank announced it would admit it attempted to engage in unconscionable conduct and would pay $25 million in penalties and costs as part of the settlement of a case alleging it manipulated the bank bill swap rate in 2012.

National Australia Bank and ANZ Banking Group also settled a similar case brought by ASIC with admissions they attempted to engage in unconscionable conduct with both NAB and ANZ paying $50 million each.

A Federal Court judgment against Westpac Banking Corp is pending, after a trial last November.

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