News: WBC UPDATE 1-Australia boosts resources, power for market watchdog

• Banks to pay for increased ASIC resources - Treasurer
• Reforms include better technological, surveillance powers
• ASIC welcomes "significant reforms"

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Australian Treasurer Scott Morrison on Wednesday announced additional funding for the markets watchdog while augmenting its power to investigate financial misdeeds and boost consumer confidence in the scandal-hit sector.

The Australian Securities and Investment Commission will get a new commissioner with prosecuting experience, Treasurer Scott Morrison said, while also announcing that ASIC Chairman Greg Medcraft's term would be extended by 18 months.

The moves come amid growing calls to hold a broader Royal Commission inquiry into the country's biggest banks following a series of revelations about misconduct and ahead of a general election expected in July.

"Banks will pay ... to increase the resources of ASIC to be a stronger cop on the beat," Morrison told reporters at a press conference on Wednesday.

"In addition, we'll be appointing an additional commissioner to ASIC who has special expertise in prosecutions. We want an ASIC that prosecutes."

ASIC welcomed the "significant reforms" that will equip it with new technology and surveillance power to monitor the banks and financial advisors real time with an aim to head off malfeasance before it occurs.

Out of a total commitment of A$127 million ($99 million), the government will invest A$61.1 million to enhance ASIC’s data analytics and surveillance capabilities as well as modernise the regulator's data management systems.

It is also providing ASIC with A$57 million for increased surveillance and enforcement in financial advice, lending, life insurance and breach reporting.

"ASIC has long believed that those who generate the need for regulation should pay for it," ASIC's Medcraft said in a statement.

ASIC is perceived to be "timid" and "hesitant", according to a 2014 Senate Inquiry. It is also seen as weaker compared to Western regulators in terms of the small fines it levies and other penalties it brings to bear.

However, it is now trying to rebuild confidence - ASIC is dragging two of Australia's biggest banks - ANZ Banking Group (ANZ) and Westpac Banking Corp (WBC) - to court after failing to reach a settlement over allegations of benchmark interest rate rigging.

ASIC secured A$149 million in compensation and remediation in the six months to December 2015, according to a report published last month. That compares with nearly A$25 million in the year-ago period. ($1 = 1.2844 Australian dollars)