ASIC Industry Funding Model
Legislation for ASIC's industry funding model came into effect on 1 July 2017.
Industry funding will see regulated entities receive an invoice for ASIC’s regulatory services delivered in the prior year.
Developing the model involved several rounds of consultation with industry.
The first invoices recovering costs for ASIC's regulatory services for the 2017–18 financial year will not be issued until January 2019.
If you have a question about the industry funding model you can send it to IFM.email@example.com.
The ASIC Supervisory Cost Recovery Levy Regulations 2017 explain who meets the criteria for each of the subsectors ASIC regulates.
Cost recovery framework - how the levies will be calculated
ASIC’s cost recovery framework was finalised on 14 July, incorporating changes made after broad industry consultation.
As a result of legislation passed on 15 June 2017, industry funding will see regulated entities share the costs of ASIC’s regulatory services for their sector.
The first invoices will be issued in January 2019 and will recover costs for regulatory services for the 2017–18 financial year.
The invoices will be based on the number of regulated entities in a sector and, in most cases, information provided by regulated entities via ASIC's new online portal.
ASIC will continue to support industry to comply with their obligations as they become due. Further details will be provided in a Cost Recovery Implementation Statement later this year.
How much will regulated entities pay?
Specific information on how much each regulated entity will pay depends on:
- ASIC’s costs for that subsector’s leviable activities, and
- the allocation of costs to regulatory entities within the subsector.
ASIC will release the estimated costs for each subsector's leviable activities for the 2017–18 financial year in the Cost Recovery Implementation Statement in October 2017.
The share of the leviable costs each regulated entity within the sub sector will pay will depend on the total number of entities in the sector and in many cases, specific information, or metrics, each entity provides on the operation of their business.
ASIC will publish indicative levies as soon as practicable after we have collected the relevant metrics from industry.
What do regulated entities have to do?
ASIC will communicate regularly with regulated entities to help them comply with their obligations. For now you should ensure that you have in place mechanisms to record any metrics you need to collect for the 2017–18 financial year.
We will collect this information via a new online portal we expect to launch in 2018. We will use this portal to communicate requirements to submit metrics and to issue invoices and communicate with entities. We will release guidance about the portal closer to the launch date.
Why are entities paying for ASIC to regulate their sectors?
Australia already has an admired system of corporate regulation supported by rule of law. These new funding arrangements will help ensure that remains the case.
The industry funding model, initiated by the Federal Government in April 2016 and subject to extensive stakeholder consultation, was designed to provide greater stability and certainty in ASIC’s funding to ensure sufficient resources to carry out its regulatory mandate.
Under the new arrangements, those who create the need for and benefit from regulation will bear the costs. Industry funding creates an incentive for subsectors to self-regulate more and reduce instances of poor conduct, improving behaviour in financial markets and limiting the need for ASIC to commit resources over time.