Financial services industry commentators responded positively to the Government's move to restore funding to the Australian Securities and Investments Commission and boost its powers.However, there were questions about the details of planned introduction of a user-pays funding model and cautions about the possible negative impact of a proposed product intervention power.And several commentators pointed out that the additional funding will only get ASIC's budget back to where it was in 2014.Treasurer Scott Morrison announced that the Government would add A$127.2 million to ASIC's budget in a "reform package" designed to bolster the regulator's surveillance and enforcement powers.The Government will appoint an additional ASIC commissioner, with a focus on the prosecution of crimes in the financial services industry.It will move ASIC's funding model to a user- pays approach, with industry paying for its regulation and supervision.ASIC chairman Greg Medcraft has had his term extended by 18 months.Of the funding package, $61.1 million will be used to enhance ASIC's data analytics and surveillance capabilities and $57 million will go to increased surveillance and enforcement in the areas of financial advice, responsible lending, life insurance and breach reporting. The Government has allocated $9.2 million to allow ASIC and Treasury to implement a number of Financial System Inquiry recommendations. These include:•    a product intervention power to enable ASIC to respond the market problems in a more targeted way;•    tougher penalties to ensure that ASIC can effectively deter misconduct; and•    stronger consumer protection in the ePayments Code.ASIC deputy chairman Peter Kell said the funding would be used to develop a number of specific surveillance projects, including insurance sales, credit card sales, mortgage broker activity and the adequacy of misconduct reporting. Kell said the industry could expect the regulator to undertake more shadow shopping exercises.The Governance Institute of Australia said the Government should have adopted the Financial System Inquiry's recommendation of a three-year funding model, which would allow ASIC to plan longer term.It also said the Financial System Inquiry had recommended that a properly resourced corporate regulator needed both government and user pays funding.The Australian Financial Markets Authority said that "incentives in the regulatory system would work better under a mixed funding model."The Association of Superannuation Funds of Australia said: "ASFA considers that all regulated industries should contribute to [ASIC] funding. The superannuation industry already makes a substantial contribution towards the cost of its regulation through the allocation ASIC receives from the industry levy collected by the Australian Prudential Regulation Authority."ASFA has expressed concern about the lack of transparency and accountability inherent in the current process by which levies are applied and utilised."The Australian Bankers Association said it supported the extra resources and expanded power, and the new funding model.The ABA said: "The banking industry supports, in principle, the product intervention power for ASIC to bolster consumer protections. However, we need to be wary of any action that may have unintended consequences and adversely impact on product innovation or consumer choice."Consumer groups Choice and Consumer Action Law Centre put out a joint statement, saying they welcomed