Proposed changes to ASIC fees on 1 July
The Government has proposed changes to the fees ASIC charges for various regulatory services such as processing Australian financial service licence applications and other professional registrations. They have changed to reflect the actual cost to ASIC associated with the work. In most cases this has resulted in a fee increase.
The proposed fee changes are subject to the passing of legislation that is currently before Parliament. Changes may take effect as soon as 1 July 2018 if the legislation passes.
What regulatory services do ASIC's 'fees for service' apply to?
ASIC's fees for service impact a range of industry stakeholders including Australian credit licensees, Australian financial services (AFS) licensees, market infrastructure providers, responsible entities, registered liquidators, and companies. The fees apply to specific regulatory activities requested by a single entity. They apply to:
- licensing and professional registrations
- processing applications for relief applications
- requests for changes to market operating rules, and
- ASIC’s formal compliance review of documents lodged by entities under the Corporations Act.
The current fees for these activities do not reflect their actual cost to ASIC. Under the fees for service model ASIC’s costs for specific regulatory activities requested by an entity will be fully recovered from that entity. The Australian Government led several rounds of consultation with industry to refine and settle the fees for service model. The new arrangements will commence from 1 July 2018, subject to legislation passing.
Fees for service: part of industry funding
The Government has introduced new laws that change the way ASIC is funded. Under the new arrangements, regulated entities will receive an invoice for ASIC’s regulatory services delivered in the prior year.
While around 90% of ASIC’s regulatory activities will be now be recovered in the form of industry funding levies, the remaining 10% will be recovered via fees for service. ASIC’s Cost Recovery Implementation Statement (CRIS) - Fees for service, provides information about how we will implement fees for service under industry funding.
Fees for service are based on the Commonwealth cost recovery guidelines, calculated based on forecast costs and historical workflow analysis. Please refer to the CRIS which includes several examples. ASIC has adopted tiered fees for some regulatory services to address their varied complexity (high, medium, low). This will help ensure the fees charged align with the actual effort and therefore costs involved. 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.
Refer to Appendix 1 in the CRIS for detailed service pricing information.
Several rounds of consultation were undertaken on the proposed changes to ASIC’s fees for service. The 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. ASIC then published its fees for service Cost Recovery Implementation Statement for consultation, which has now closed.
- 1 July 2018 – fees for service legislation to take effect (subject to legislation passing)
- October 2018 - industry funding and fees for service Cost Recovery Implementation Statements combined and published as a single document.
There are five pieces of legislation that implement ASIC’s fees for service.
- 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.