Cost recovery implementation statement - fees for service

This Cost Recovery Implementation Statement (CRIS) - Fees for service provides information about proposed price increases and how we will implement fees for service under industry funding, first considered by the Government in April 2016.

Industry consultation

The Australian Government released exposure draft legislation on the second phase of industry funding—the introduction of fees for service—on 11 April 2018. Consultation on the exposure draft legislation to implement fees for service under ASIC industry funding closed on 1 May 2018.

Key dates

Fees for service is the second phase of industry funding, where Levies took effect from the commencement of the 2017-18 financial year. Industry funding is intended to ensure that our costs are borne by those creating the need for regulation; improve our cost transparency and accountability to industry; and ensure that ASIC is adequately resourced to carry out our regulatory mandate.

Key dates for fees for service are as follows:

  • Draft CRIS - fees for service (2018–19) published for consultation, May 2018
  • Final CRIS - fees for service, published 3 July 2018
  • The introduction of fees for service effective from July 4, 2018
  • Incorporate the fees for service CRIS and the levies CRIS into a single CRIS - Industry funding, October 2018

Fees for service will be reviewed periodically to ensure they remain accurate and reflective of effort.

Statutory authority for fees for service

The legislative framework for fees for service was established by five pieces of legislation:

  • the Corporations (Fees) Amendment (ASIC Fees) Bill 2018
  • the Superannuation Industry (Supervision) Amendment (ASIC Fees) Bill 2018
  • the National Consumer Credit Protection (Fees) Amendment (ASIC Fees) Bill 2018
  • the Superannuation Auditor Registration Imposition Amendment (ASIC Fees) Bill 2018, and
  • the Treasury Laws Amendment (ASIC Fees) Regulations 2018.

Activities excluded from fees for service

The fee for lodgement of certain forms will not be recovered under fees for service. Nor will costs associated with maintaining our Registry business.

Fees for service activities

We undertake a range of activities for specific entities at their request. These regulatory activities where we charge fees for service are;

  • licensing and registration
  • compliance reviews of documents
  • requests for changes to market operating rules
  • assessing applications for relief

These services impact a range of industry subsectors including; Australian credit licensees, Australian financial services (AFS) licenses, market infrastructure providers, responsible entities, registered liquidators, and companies.

Fees for service methodology

Fees for service are based on cost recovery guidelines, calculated based on forecast costs and historical workflow analysis. Please refer to the CRIS which has a number of worked examples.

We have adopted tiered fees for regulatory service activities that vary in complexity (high, medium, low). This will help ensure the fees for service more closely align with our actual effort and therefore costs. Tiered pricing applies to the following regulatory activities:

  • AFS licence applications
  • credit licence applications
  • market licence applications
  • notices of changes to market and CS facility operating rules; and
  • Australian CS facility licence applications.

Please refer to Appendix 1: Fees-for-service schedules, for detailed service pricing information.

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Last updated: 03/07/2018 02:20