The Government has confirmed that it will introduce an industry funding model for ASIC through a cost recovery levy, commencing 1 July 2017. Background.
Details are expected to be included in the Commonwealth Budget.
UPDATE: The ASIC Supervisory Cost Recovery Levy Bill 2017 was passed by the House of Representatives on 30 May 2017 and assented to on 19 June 2017. It will commence on 1 July 2017.
Treasury has released draft regulations to establish the mechanisms that will be used to calculate the levies payable by each class of regulated entity, each financial year.
The ASIC Supervisory Cost Recovery Regulations 2017 apply either a flat or a graduated levy to entities in each industry subsector regulated by ASIC. The type of levy and the formula for calculating the amount of levy payable is different for each industry subsector.
The sectors are:
- Corporate;
- Deposit-taking and credit;
- Investment management, superannuation and related services;
- Financial advice;
- Market infrastructure and intermediaries.
The Regulations:
• establish the criteria for determining the subsectors an entity is a part of;
• set out the formulas and metrics to be used for calculating the amount of levy payable for entities in each subsector;
• provide for ASIC to make an annual legislative instrument specifying information about each of the regulated industry subsectors that must be used in the formulas for calculating the amount of levy payable by entities in each subsector; and
• prescribe certain amounts that should not be included as part of ASIC’s regulatory costs.
