Treasurer pledges to embed watchdogs in banks, gives them a ‘big stick’

The corporate watchdog will be given a $70 million funding boost to conduct surveillance of our major banks.

ASIC will embed officers inside the big four banks and AMP to ensure they are complying with the law.

Federal Treasurer Scott Morrison told 3AW’s Tony Jones (hosting for the ill Neil Mitchell) that the move will pick up deficiencies in our financial institutions.

“We need to have more effective enforcement of our corporate regulations, particularly in our banking and financial system,” Mr Morrison said.

He disagreed with Tony’s description of  the officers as “spies”, but said they will “walk quietly but carry a big stick”.

Click PLAY to listen

Meanwhile, Mr Morrison said he believes the states will agree to make changes that scrap the so-called tampon tax.

“There’s already been some positive response,” he said.

“This is an anomaly that we’re just going to sort out.”