Cost recovery implementation statement: Key terms
This is a list of the key terms used in Cost Recovery Implementation Statement: ASIC industry funding model (2023–24).
| Term | Meaning in CRIS |
|---|---|
| AFS licence | An Australian financial services licence under section 913B of the Corporations Act that authorises a person who carries on a financial services business to provide financial services Note: This is a definition in section 9. |
| AFS licensee | A person who holds an AFS licence under section 913B of the Corporations Act |
| allowance for capital expenditure | A figure equal to ASIC’s departmental capital budget and equity injection appropriations to develop infrastructure to support new regulatory responsibilities |
| APRA | Australian Prudential Regulation Authority |
| ASIC Act | Australian Securities and Investments Commission Act 2001 |
| ASX | ASX Limited or the exchange market operated by ASX Limited |
| ATO | Australian Taxation Office |
| auditors of disclosing entities | Authorised audit companies and audit firms that audit disclosing entities with quoted securities |
| Australian derivative trade repository operators | Has the meaning given in reg 59 of the Cost Recovery Levy Regulations |
| Australian market licence | An Australian market licence under section 795B of the Corporations Act that authorises a person to operate a financial market |
| benchmark administrator licence | A benchmark administrator licence under section 908BC(1) of the Corporations Act that authorises a person to administer a significant financial benchmark |
| benchmark administrator licensee | The holder of a benchmark administrator licence |
| CADB | Companies Auditors Disciplinary Board, formerly known as the Companies Auditors and Liquidators Disciplinary Board (CALDB) |
| CFR | Council of Financial Regulators |
| claims handling and settling services providers | Has the meaning given in reg 72AA of the Cost Recovery Levy Regulations |
| Corporations Act | Corporations Act 2001, including regulations made for the purposes of that Act |
| corporate advisers | Has the meaning given in reg 63 of the Cost Recovery Levy Regulations |
| Cost Recovery Guidelines | Australian Government Cost Recovery Guidelines |
| Cost Recovery Levy Act | ASIC Supervisory Cost Recovery Levy Act 2017 |
| Cost Recovery Levy Regulations | ASIC Supervisory Cost Recovery Levy Regulations 2017 |
| credit licence | An Australian credit licence under section 35 of the National Credit Act that authorises a licensee to engage in particular credit activities |
| credit licensee | A person who holds an Australian credit licence under section 35 of the National Credit Act |
| credit provider | Has the meaning given in section 5 of the National Credit Act |
| credit rating agencies | Has the meaning given in reg 60 of the Cost Recovery Levy Regulations |
| CRIS | Cost Recovery Implementation Statement |
| CS facility | A clearing and settlement facility as defined in section 768A of the Corporations Act |
| CS facility licence | An Australian CS facility licence under section 824B that authorises a person to operate a CS facility in Australia |
| CS facility operator | An entity that operates a CS facility under a CS facility licence |
| CSF | Crowd-sourced funding |
| CSF intermediary | An AFS licensee whose licence expressly authorises the licensee to provide a crowd-funding service
Note: See section 738C of the Corporations Act. |
| CSF regime | The statutory regime for crowd-sourced funding in Part 6D.3A of the Corporations Act regulating CSF offers |
| custodian | A person with primary contractual responsibility to an AFS licensee to act as, or directly or indirectly engage, an asset holder |
| deposit product provider | Australian deposit-taking institutions (i.e. banks, credit unions and building societies) that provide deposit products to consumers, such as deposit accounts, certificates of deposit, and foreign currency deposits |
| ESA | ASIC Enforcement Special Account |
| equity injection appropriation | Funds provided by the Australian Government to ASIC to enable investment in assets (e.g. capital expenditure) |
| exempt CS facility operators | Market infrastructure providers that hold an exemption from the requirement to hold a CS facility licence |
| exempt market operators | Market infrastructure providers that hold an exemption from the requirement to hold a market licence |
| fees for service | Fees charged to recover our costs for services provided |
| fees-for-service activities |
ASIC activities for which we will charge a fee. These can be broadly categorised as:
|
| Fees Regulations | Corporations (Fees) Regulations 2001 |
| FICC markets | Fixed income, currencies and commodities markets |
| financial adviser levy relief | Temporary relief for AFS licensees that provide personal advice to retail clients on relevant financial products. The relief restored the graduated component of the levy charged for this subsector to its 2018–19 level for two years (2020–21 and 2021–22)
Note: See the Hon. Josh Frydenberg MP, former Treasurer, and Senator the Hon. Jane Hume, former Minister for Superannuation, Financial Services and the Digital Economy, Temporary and targeted relief on ASIC levies for financial advisers, joint media release, 30 August 2021. |
| financial advisers register | A register maintained by ASIC of individuals who are authorised to provide personal advice to retail clients on investments, superannuation and life insurance |
| financial product advice | A recommendation or a statement of opinion, or a report of either of these things, that:
This does not include anything in an exempt document or statement Note: This is a definition in section 9 of the Corporations Act. |
| Financial Services Royal Commission | Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry |
| flat levy | The flat levy formula apportions our regulatory costs equally between entities in the same subsector where there is no relevant business activity metric |
| FSI | Financial System Inquiry |
| FTE staff | Full-time equivalent staff |
| FYE | Full-year equivalent |
| general advice | Financial product advice that is not personal advice
Note: This is a definition in section 9 of the Corporations Act. |
| graduated levy |
A levy based on the graduated levy component formula, where all entities in a subsector must pay:
|
| IDPS | An investor directed portfolio service as defined in ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 or any instrument that amends or replaces that instrument |
| IDPS operator | An entity that operates an IDPS |
| INFO 257 (for example) | An ASIC information sheet (in this example numbered 257) |
| insurance product distributors | Has the meaning given in reg 70 of the Cost Recovery Levy Regulations |
| insurance product providers | Has the meaning given in reg 72 of the Cost Recovery Levy Regulations |
| IOSCO | International Organization of Securities Commissions |
| IT | Information technology |
| large proprietary companies | Has the meaning given in reg 16 of the Cost Recovery Levy Regulations |
| LIF reforms | The Life Insurance Framework reforms, which came into effect on 1 January 2018 |
| listed corporations | Has the meaning given in reg 22 of the Cost Recovery Levy Regulations |
| managed investment scheme | Has the meaning given in section 9 of the Corporations Act |
| margin lenders | Has the meaning given in reg 23 of the Cost Recovery Levy Regulations |
| market licensee | The holder of an Australian market licence
Note: This is a definition contained in section 9 of the Corporations Act. |
| market participants | Has the meaning given in section 9 of the Corporations Act |
| market supervision cost recovery | Cost recovery for market competition associated with the transfer of the market supervision function to ASIC in 2010. |
| market surveillance system | ASIC’s system for surveilling financial markets |
| MBR program | Modernising Business Registers program |
| MDA | Managed discretionary account |
| medium amount credit contract | Has the meaning given in section 204 of the National Credit Code (Schedule 1 to the National Credit Act) |
| National Credit Act | National Consumer Credit Protection Act 2009 |
| own-source revenue | Revenue generated from sources such as sub-leasing office space to other agencies, publishing royalties and the recovery of court-awarded costs |
| OTC | Over the counter |
| OTC traders | Has the meaning given in reg 66 of the Cost Recovery Levy Regulations |
| payment product providers | Has the meaning given in reg 28 of the Cost Recovery Levy Regulations |
| PDS | A Product Disclosure Statement—a document that must be given to a retail client for the offer or issue of a financial product in accordance with Division 2 of Part 7.9 of the Corporations Act
Note: See section 9 for the exact definition. |
| personal advice | Financial product advice given or directed to a person (including by electronic means) in circumstances where:
Note: This is a definition in section 9 of the Corporations Act. |
| PGPA Act | Public Governance Performance and Accountability Act 2013 |
| process service | The official service of documents on a party that alerts them that court proceedings have been initiated |
| RBA | Reserve Bank of Australia |
| reg 20 (for example) | A regulation of the Cost Recovery Levy Regulations (in this example numbered 20), unless otherwise specified |
| registered company auditors | Has the meaning given in reg 18 of the Cost Recovery Levy Regulations |
| registered liquidator | A person registered by ASIC under section 20-30 of Schedule 2 to the Corporations Act |
| registered scheme | A managed investment scheme that is registered under section 601EB of the Corporations Act |
| registrable superannuation entity | Has the meaning given in the SIS Act |
| relevant financial product | A financial product other than a basic banking product, general insurance product, consumer credit insurance, or a combination of any of these products: see section 922C of the Corporations Act |
| REP 633 (for example) | An ASIC report (in this example numbered 633) |
| responsible entity | A responsible entity of a registered scheme as defined in section 9 of the Corporations Act |
| retail client | A client as defined in section 761G and 761GA of the Corporations Act and Division 2 of Part 7.1 of the Corporations Regulations |
| retail OTC derivatives issuers | Has the meaning given in reg 61 of the Cost Recovery Levy Regulations |
| RG 260 (for example) | An ASIC regulatory guide (in this example numbered 260) |
| risk management product providers | Has the meaning given in reg 71 of the Cost Recovery Levy Regulations |
| RSE licensee | A registrable superannuation entity licensee—has the meaning given in section 10 of the SIS Act |
| s912C (for example) | A section of the Corporations Act (in this example numbered 912C), unless otherwise specified |
| securities dealers | Has the meaning given in reg 67 of the Cost Recovery Levy Regulations |
| SIS Act | Superannuation Industry (Supervision) Act 1993 |
| small amount credit contract | Has the meaning given in section 5 of the National Credit Act |
| small proprietary companies | Has the meaning given in section 45A(2) of the Corporations Act |
| SMSF | A self-managed superannuation fund |
| superannuation fund | Has the meaning given in section 10(1) of the SIS Act |
| superannuation trustee | A person or group of persons licenced by APRA under section 29D of the SIS Act to operate a registrable superannuation entity (e.g. superannuation fund) (also known as an ‘RSE licensee’) |
| supervisory college | Supervisory colleges were established to facilitate the exchange of information between the supervisors of internationally active credit rating agencies, to foster more effective supervision of these agencies |
| Takeovers Panel | The panel established under section 171 of the ASIC Act and given various powers under Part 6.10 of the Corporations Act |
| Tier 1 CS facility | Has the meaning given in reg 54 of the Cost Recovery Levy Regulations |
| Tier 2 CS facility | Has the meaning given in reg 55 of the Cost Recovery Levy Regulations |
| Tier 3 CS facility | Has the meaning given in reg 56 of the Cost Recovery Levy Regulations |
| Tier 4 CS facility | Has the meaning given in reg 57 of the Cost Recovery Levy Regulations |
| TPD | Total and permanent disability |
| traditional trustee company services |
Has the meaning given in section 601RAC(1) of the Corporations Act, and includes:
|
| unlisted public companies | Has the meaning given in reg 17 of the Cost Recovery Levy Regulations |
| weighted average hourly rate | Has the meaning given under ‘How the fees-for-service model is calculated’ on the Fees webpage |
| wholesale client | A client who is not a retail client as defined in section 761G of the Corporations Act and Division 2 of Part 7.1 of the Corporations Regulations |
| wholesale electricity dealers | Has the meaning given in reg 62 of the Cost Recovery Levy Regulations |
| wholesale trustee | Has the meaning given in reg 37 of the Cost Recovery Levy Regulations |