ASIC industry funding

Industry funding metrics submissions now closed

The deadline for submitting industry funding business activity metrics has passed.

Invoices will be issued in January 2019.

What do I do if I have missed the deadline and did not submit business activity metrics?

If you have missed the deadline and have not submitted your business activity metrics, you are still encouraged to register an ASIC Regulatory Portal account for future correspondence with ASIC.

The penalties in the legislation can apply if someone has not submitted metrics without a “reasonable excuse”. For those who believe they have a reasonable excuse they need to provide evidence by contacting us online. Ensure you select "Company" and then "Industry Funding" so the inquiry is sent to the correct team quickly. Please attach any documentary evidence.

How will you calculate my invoice if I did not submit business activity metrics?

There are a range of steps that ASIC will take to calculate invoices for entities that did not submit business activity metrics.

Key dates

2018

November: ASIC will publish its actual regulatory costs for FY 2017-18 in November. This will include levy amounts by subsector (not at the entity level). Entities will be able to calculate their invoice amounts from this information.

December: Indicative levies for FY 2018-19 will be published in the Cost Recovery Implementation Statement (CRIS). This will also include a comparison of the indicative levies versus actual levies for FY 2017-18.

2019

January: invoices issued. Due for payment within 30 days.

July through September:  entities will need to log in to the ASIC Regulatory Portal and submit their industry funding business activity metrics for the previous financial year.

Background information about industry funding

  • The Government’s industry funding arrangements for ASIC became law in 2017.
  • Industry funding is an annual cycle. Between July and September each year, entities will need to log in to the ASIC Regulatory Portal and submit their industry funding business activity metrics for the previous financial year.
  • The information provided will enable ASIC to calculate each entity’s share of the regulatory costs for the sector in which they operate.
  • The detailed methodology for how we will calculate levies for each industry sector is outlined in Report 535 ASIC cost recovery arrangements: 2017–18.

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How does industry funding work?

Regulated entities have been categorised into 48 subsectors across all corporate entities subject to the Corporations Act, auditors, insolvency practitioners, credit licensees, Australian Financial Service licensees and other regulated entities and individuals.

ASIC's regulatory costs will be allocated among these subsectors through either a flat levy or a graduated levy.

The industry funding model will recover the actual amount spent during the previous financial year. Therefore the levies can only be calculated and issued in the following financial year.

How will levies be calculated?

Some entities will pay a flat levy, with the cost of regulating a subsector shared equally among the entities operating in that subsector.

Other entities will pay a graduated levy, with the entity's size or level of business activity determining their share of costs.

The detailed methodology for how we will calculate levies for each industry sector is outlined in Report 535 ASIC cost recovery arrangements: 2017–18.

A new obligation for ASIC's regulated population

Between July and September each year, regulated entities will provide ASIC with their business activity metrics for the previous financial year. The first collection will occur in July to September 2018. The deadline for business activity metrics to be provided via ASIC’s new Regulatory Portal is 27 September 2018.

For those required to pay a flat levy only, the information you provide will confirm which subsector you have been operating in. This will allow us to divide our costs with the final number of entities operating in your subsector.

For those paying a graduated levy, the information you provide will confirm your entity's 'share' of the leviable activities in your subsector and will determine your final invoice amount.

It is important that you have the systems in place to capture this information.

Each year in January you will receive an invoice via the Regulatory Portal. The first invoices will be issued in January 2019.

Small proprietary companies

ASIC’s regulatory costs for small proprietary companies will be collected through a small increase to their Annual Review Fee, which took effect from 1 July 2018. For FY 2017-18 this was $4 per entity. This simple fee increase minimise the reporting burden on small proprietary companies.

Note: If the entity is a small proprietary limited company and does not fall into one of the other subsectors then they will only pay the small additional fee on their Annual Review Fee. However, if they are a small proprietary company and fall into a regulated subsector then the company will be required to submit metrics in the Portal and the levy for that subsector will also apply.

The ASIC website contains a definition of a small proprietary company.

Individuals acting on behalf of the entity

Only company directors or secretaries can perform initial entity registration in the ASIC Regulatory Portal. Once the director or secretary have registered they can then invite a trusted representative such as a company employee, a compliance officer, or a registered agent to the portal to connect to their entity and assign the them required user access to view confidential information and perform regulatory tasks on behalf of the entity.

The director/secretary will only ever have to register and assign access to the trusted representative or registered agent, once for their entity.

The trusted representative or registered agent, will then receive an invitation to the portal for the relevant entity and will be able to perform the required duties on behalf of the entity which they represent, including for example, the submission of industry funding business activity metrics.

What are ASIC's costs?

The cost of ASIC's work in each subsector is forecast in ASIC's annual Cost Recovery Implementation Statement – or CRIS. The CRIS is a document that ASIC will publish each year which will set out the expected expenditure on its regulatory activities. The CRIS is a key part of ASIC's accountability to Government and industry around the transparency of our costs.

Can I use the figures in the CRIS to estimate my invoice for FY 2017-18?

The figures in the CRIS reflect ASIC's budgeted resource allocation. They should be used on an indicative basis only.  

Where possible, ASIC will publish the indicative levies in advance for each subsector. For FY 2017-18, this will only be possible where ASIC can access the business activity metrics that are used to allocate costs for that subsector. This information was only available for around 80% of leviable entities in the regulated population.

Fees for service

The Government passed legislation in accordance with the Cost Recovery Implementation Statement (CRIS) – Fees for Service on 28 June, with new pricing taking effect 4 July 2018. ASIC charges these fees when doing work for licensing and professional registrations, applications for relief and reviews of corporate finance transaction documents.

Background

Industry funding will allow ASIC to better focus its resources on the sectors that are creating the need for most regulation.

In response to the recommendations of the Financial System Inquiry, the Government began consulting with affected industries on the operation of the industry funding model in April 2016. The regime commenced on 1 July 2017.

Industry funding strengthens ASIC's accountability to, and relationship with, industry because the cost of what we do will be more transparent.

Industry funding legislation was passed on 15 June 2017. Regulations were finalised on 27 June 2017, and the new regime took effect on 1 July 2017.

ASIC industry funding

If your work is regulated by ASIC,  the time to act is now.

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Industry funding metric submission in the portal

This is how you submit your business activity metrics.

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Last updated: 02/11/2018 04:40