22 November 2017
Media Release - #2017112, 2017

In the role of: Minister for Revenue and Financial Services [19 July 2016 - 28 August 2018]

ASIC industry funding model consultation on regulatory fees-for-service activities

The Turnbull Government is committed to ensuring that ASIC has the resources and powers it needs to combat misconduct in Australia’s financial services industry and bolster consumer confidence in the sector.

Consistent with this commitment, the Government has today released a consultation paper on the next phase of the ASIC industry funding model – the introduction of ASIC fees‑for‑service.

The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said the introduction of the ASIC industry funding model was a key recommendation of the Murray Financial System Inquiry and is a critical component of the Government’s reforms to strengthen ASIC and better protect Australian consumers.

On 1 July 2017, the first phase of the ASIC industry funding model commenced with the introduction of industry levies to recover the costs of ASIC’s regulatory activities.

Industry funding ensures that the costs of regulation are borne by those that have created the need for it, rather than the Australian public who too often already bear the costs of financial sector misconduct. The model also promotes equity, incentivises greater regulatory compliance and enhances ASIC transparency and accountability.

“The industry funding model is an important component of the Government’s plan to improve consumer outcomes in the financial services sector,” Minister O’Dwyer said.

The consultation paper released today looks at the recovery of ASIC regulatory costs that are directly attributable to a single, identifiable, entity. This is referred to as ‘fees‑for‑service’. This is the final aspect of the ASIC Industry Funding Model and will commence from 1 July 2018.

Since the original consultation, ASIC has collected new data using time recording to more accurately reflect the pricing fees. This consultation paper reflects the outcomes of this process and outlines model enhancements including:

  • the introduction of a tiered fee system for many activities, so that the amount of the fee more accurately reflects the complexity of the activity; and
  • the removal of the increased fee for novel relief applications (so all relief applications are charged the same fee) recognising the industry benefits that often result from novel applications activities.

Fees associated with registry activities are excluded from the scope of this proposal.

Comments on the consultation paper close 15 December 2017. Stakeholders are invited to provide their feedback on the Treasury website.