The powers of the Federal Court of Australia are to be expanded to include corporate crime so it can deal with misconduct in the finance sector.
The expansion, along with more that $35 million funding from next week’s Budget, will ensure that those who engage in financial sector criminal misconduct are prosecuted and face the appropriate punishment.
Treasurer, Josh Frydenberg said the money would be used for the appointment of two judges, 11 Registry and support staff and the construction of new Court facilities.
“Referrals arising out of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and increased enforcement activity as a result of the Australian Securities and Investments Commission (ASIC) shift to a ‘why not litigate’ approach, are expected to give rise to more criminal prosecutions,” Mr Frydenberg said.
“Criminal prosecutions for misconduct by banks and other financial institutions are currently heard in State courts and hence have to compete with State cases for resources and scheduling.”
He said the Government was taking action on all 76 recommendations made by Commissioner Hayne with the new powers for the Federal Court going beyond the call for additional capacity within the Australian court system to allow matters to be heard and penalties for criminal breaches of the law to be handed out faster.
“Commissioner Hayne emphasised that effective deterrence relies on the timely instigation of proceedings,” the Minister said.
He said the funding built on $9.9 million provided to the Federal Court last November to fund the appointment of additional resources, including two new judges to support civil cases, and $41.6 million allocated to the Commonwealth Director of Public Prosecutions to prosecute briefs from ASIC.
