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20-134MR Industry funding: ASIC publishes Cost Recovery Implementation Statement 2019-20 for feedback
ASIC today published its draft Cost Recovery Implementation Statement (CRIS) 2019-20. The CRIS details ASIC’s actual regulatory costs for 2018-19 and provides an estimate of costs for 2019-20. The estimated costs are published to give industry an indication of what levy costs to expect. They are a guide only.
This CRIS was prepared on the basis of budgeted cost allocations and planned regulatory work for the 2019-20 financial year. There will be differences between indicative and actual regulatory costs, once known. Final levies to be paid by entities will be based on actual costs for 2019-20, which will be published in December 2020 and invoiced in January 2021.
As many businesses are focused on dealing with the impact of the COVID-19 pandemic at this time, ASIC has extended the feedback period to allow entities additional time to provide their comments. Feedback on the draft CRIS can be provided over the next six weeks until 24 July 2020.
Please visit asic.gov.au to find out more about industry funding, including information on assistance with payment of levies.
ASIC’s budget is set by the Government. ASIC is required to detail, in the form of a CRIS, how the cost of ASIC’s regulatory activities will be recovered from each subsector it regulates through industry funding levies and how transaction-based regulatory costs will be recovered via fees for service in 2019-20.
The CRIS includes:
- an explanation of the cost recovery model, including the business process, outputs and how we allocate costs to calculate the levies and fees for service
- a forecast of ASIC’s regulatory costs
- estimates of the levies that each regulated subsector will pay for 2019-20. Indicative levies are a guide only. They are based on budgeted allocation of costs and estimates of the business activity metrics for each subsector. The amounts are likely to change when ASIC’s actual costs and the actual business activity metrics are known.
- actual costs ASIC incurred in 2018-19 for each subsector and the variance between the actual costs and the estimated costs in last year’s CRIS. Where there is a material variance, the CRIS explains the drivers for the variance.
- an assessment of the risks associated with the industry funding model and how those risks have been managed.