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.