Greg Medcraft, the Chairman of Australia's Securities and Investments Commission, has announced his intention to recover the costs that ASIC incurs in its investigations from any financial firm it prosecutes or sues successfully.

Medcraft announced his policy to the Parliamentary Joint Committee on Corporations and Financial Services a few days ago. Generally speaking and with rare exceptions, ASIC to date has paid the expenses of the investigations it conducts, but it is allowed to recover investigatory costs in the event of a successful prosecution or civil proceeding in accordance with s91 Australian Securities and Investments Commission Act 2001.

The chief regulator added: "The new approach will apply to investigations from 29 July 2015 as well as all investigations started before this date, where an outcome has not yet been agreed."

ASIC is hungry for cash and, in its favour, the recent Murray Inquiry recommended that its regulatory activities should be funded by the financial services industry as well as other sources. A government "capability review" is in the offing. Over the past three years, reviews have been visited on 19 Federal Government departments and agencies.