What is industry funding?
The Government has introduced new laws to change the way ASIC is funded. Under the new arrangements, those who create the need for and benefit from ASIC's regulation will bear the costs.
Treasury began the consultation process in August 2015 with a consultation paper and a series of round tables.
In April 2016, the federal government announced it would introduce industry funding for ASIC, subject to further consultation with industry. A revised proposal paper was published in November 2016 and further industry round tables were held. The legislation and regulations were also subject to industry consultation before these were finalised.
What regulatory activities will industry fund?
Most of ASIC's regulatory costs will be recovered from industry. These activities are outlined in our Cost recovery implementation statement (CRIS) published in October 2017, and include stakeholder engagement, education, guidance, surveillance, enforcement, and policy advice.
Why has the Government decided on an 'industry pays' approach?
An 'industry pays' model means that the funding of regulatory activities undertaken by ASIC is met by those creating the need for regulation, rather than the Australian taxpayer.
How much will regulated entities pay and when?
We will calculate individual entity levies based on what it costs ASIC to regulate each subsector, in addition to the data provided by or verified by entities in their annual returns, via a new Regulatory Portal (launching in 2018).
The metrics used to calculate the levy for each subsector are readily available and will include one or two of the following:
- revenue generated
- total assets
- credit provided
- deposits held for deposit product providers
- number of new and ongoing appointments for registered liquidators.
The industry funding model will recover costs associated with the previous financial year. So entities will receive their first invoice in January 2019 for the 2017-18 financial year
Regulated entities have been categorised into 6 sectors and 48 subsectors across all corporate entities subject to the Corporations Act. For further detail on the sectors and subsectors refer to Report 535 ASIC cost recovery arrangements 2017-18.
ASIC's regulatory costs will be allocated among these subsectors through either a flat (or basic) levy or a graduated levy.