ASIC has published its new finalised cost recovery framework in Report 535 ASIC cost recovery arrangements: 2017-18, which identifies industry sectors and provides a methodology for how the levies will be calculated. Background
The first invoices will be issued in January 2019 and will recover costs for regulatory services for the 2017–18 financial year.
The Appendix to the Report sets out the sector categories and whether there will be a flat levy or a graduated levy, which varies with the number of providers in the sector, and, in the case of a graduated levy, the minimum amount of a levy.
If a company operates in multiple sectors it will pay the levy for each sector in which it operates.
Fees payable and the categories in the Deposit taking and credit sector include:
- Credit providers (Minimum levy $2000);
- Small amount credit providers;
- Credit intermediaries (Minimum levy $1000);
- Authorised representatives;
- Deposit product providers (Minimum levy $2000);
- Payment product providers;
- Margin lenders.
Fees payable and the categories in the financial advice sector include:
- AFS licensees authorised to provide financial product advice on relevant products to retail clients (Minimum levy $1,500);
- AFS licensees authorised to provide financial product advice to retail clients, only on products that are not relevant products;
- AFS licensees authorised to provide general advice only;
- AFS licensees authorised to provide financial product advice, only to wholesale clients.
Fees payable and the categories in the insurance sector include:
- Insurance product providers (Minimum levy $20,000);
- Insurance product distributors;
- Risk management product providers.