ASIC has published its Cost Recovery Implementation Statement (CRIS) for 2022-23 which details ASIC’s estimated levies for 2022-23 by industry subsector.

Final levies will be published in December 2023 and invoiced between January 2024 and March 2024.

Examples include:

• Deposit product providers: Minimum levy of $2,000, plus $2.75 per $1m of total deposit liabilities above $10m
• Credit providers: Minimum levy of $2,000, plus $38.41 per $1m of credit provided above $100m (other than for small and medium amount credit contracts)
• Small and medium amount credit providers: $52.29 per $10,000 of credit provided under small and medium credit contracts
• Credit intermediaries: Minimum levy of $1,000, plus $14.62 per credit representative
• Superannuation trustees: Minimum levy of $18,000, plus $13.68 per $1m of assets above the $250m threshold
• Financial advice licensees that provide personal advice to retail clients on relevant financial products: Minimum levy of $1,500, plus $3,217 per adviser.

To address recommendations outlined in the Australian Government’s ASIC’s Industry Funding Model review report, ASIC and Treasury will establish a five-yearly consultation process with industry to examine the policy settings of the IFM.

Key recommendations of the review report include:

• spreading the costs of certain regulatory activities (taking action against unlicenced operators, regulating emerging sectors, and capital expenditure) either across a wider population or over time to recognise the wider benefits of those activities
• undertaking further consultation to ensure sub‑sector definitions, metrics and formulas used to calculate levies remain fit‑for‑purpose
• delegating the fee‑setting power to ASIC to ensure fee amounts continue to reflect full cost recovery
• ASIC to enhance its reporting, transparency, and consultation arrangements on the IFM.

The Review also considered the temporary levy relief for personal financial advice licensees that was in place for 2020‑21 and 2021‑22. The temporary levy relief for this sub‑sector will not be extended further. The Review recommends reviewing each of the four sub‑sectors that fall within the financial advice sector and whether the existing sub‑sector definitions, metrics and formulas remain appropriate. This will be progressed alongside the implementation of the Government’s response to the Quality of Advice review.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.