Legal counsel pay constraints leave Australia's corporate watchdog at a disadvantage when it fights big business in court, its boss has told politicians.
Australian Securities and Investments Commission chair Joe Longo is calling for a reconsideration of strict limits on its legal fees.
"We are severely constrained by the commonwealth caps and we cannot pay commercial rates," he told a parliamentary hearing on Friday.
"We're often facing very well-resourced defendants who, of course, are not constrained by the commonwealth rate."
Government agencies are allowed to pay senior counsel $3500 per day, which can be bumped to $5000 in exceptional circumstances.
"It would be helpful for agencies like ours to have a little bit more discretion and flexibility for those cases where we really do warrant paying market rates," Mr Longo said.
Chris Savundra, an executive director and former general counsel at ASIC, said the caps had not changed since 2011.
"The gap between commonwealth rates and commercial rates continues to widen," he told the parliamentary committee.
In 2019, agencies could pay the equivalent of 45 per cent of market rates. It has since sunk to one-quarter of what top silks can claim from big companies.
"The top rate would be somewhere between $25,000 and $28,000 day," Mr Savundra said.
"The commercial bar predominantly work for and service the top end of town, very much those that we regulate,
"They have deep experience and expertise, and that is why they command the rates that they do."
The corporate watchdog was well served by its counsel, who often worked at a discount to their own rates, Mr Savundra said.
ASIC was not looking to pay consistent, full commercial rates at the taxpayer's expense.
"What we're seeking is additional flexibility," Mr Savundra said.
"Value for money is obviously a critical consideration for ASIC as a commonwealth agency."
