How the ASIC Industry Funding model affects you

The Government is seeking stakeholder views on the proposed ASIC industry funding model to recover the regulatory costs of ASIC through annual levies and fees-for-service. The model has been revised following consultation in 2015.

It is proposed that from 2017-18 onwards, all of ASIC’s regulatory costs will be recovered (other than costs associated with ASIC’s registry business and prosecution costs) via the industry funding model.

Indicative levies for 2018-19 are expected to be published in June 2018 and the first payable invoice issued in February 2019.

The model divides ASIC’s activities into two categories: ongoing regulatory activities and user-initiated service costs.

Ongoing regulatory activities, such as the cost of regulating financial advisers and credit providers, would be recovered via a levy.

User-initiated service costs, such as licensing, would be recovered via fees-for-service.

INDICATIVE LEVIES BASED ON FINANCIAL YEAR 2016-17

The proposed levies include:

Public companies (listed, disclosing): $4,000 minimum levy proposed for all public listed, disclosing entities plus $0.33 per $10,000 of market capitalization above $5 million. The proposed maximum levy is $662,000 for entities with a market capitalization greater than $20 billion.

Public companies (non-listed disclosing): $3,350 annual levy
Public companies (non-disclosing): $170 annual levy

Large proprietary companies: $350 annual levy

Credit providers: $2,000 proposed minimum levy for all credit providers plus an estimated $0.15 per $10,000 of credit provided (other than under a small amount credit contract) greater than $100 million.

Credit intermediaries (brokers):  $1,000 proposed minimum levy for all credit intermediaries plus an estimated $1.14 per $10,000 of credit provided greater than $100 million.

Responsible entities: $7,000 proposed minimum levy payable by all responsible entities plus an estimated $0.24 per $10,000 of Funds under management greater than $10 million.

Superannuation trustees: $18,000 proposed minimum levy payable by all superannuation trustees plus $0.05 per $10,000 of Funds under management greater than $250 million.

Financial advisers (Licensees that provide personal advice providers on Tier 1 products to retail clients): Estimated $960 per adviser listed on the financial advisers register (with a minimum levy of $960 payable for entities with no advisers registered on the FAR)

Insurers: $20,000 proposed minimum levy payable by all insurance product providers plus an estimated $0.59 for each $10,000 of net premium revenue or net earned premium above $5 million.

Print Friendly, PDF & Email
 

Access our Online Resources

We understand you need a cost-effective way to keep up to date with regulatory changes