The Turnbull Government is delivering on its commitment to introduce an industry funding model for the Australian Securities and Investments Commission (ASIC), with the model’s Phase 2 Fees-for-service consultation paper released for stakeholder feedback.
Under the ASIC Industry Funding Model, from 1 July 2018 fees-for-service will be introduced to recover ASIC regulatory costs that are directly attributable to a single, identifiable, entity. These fees are imposed under the Corporations (Fees) Act 2001 and specified in the Corporations (Fees) Regulations 2001. Fees associated with registry activities are excluded from the scope of this proposal.
Currently, the fees associated with these activities do not reflect the costs to ASIC of undertaking these activities. Traditionally, many of these activities have only attracted a nominal fee, which has not been subject to any review resulting in the cost of these activities being subsidised by taxpayers.
The Australian Government previously consulted on this measure in 2015. The revised model outlined in this consultation paper includes enhancements to reflect feedback from the previous consultation including: the introduction of a tiered fee system for many activities, so that the amount of the fee more accurate reflects the complexity of the activity; and the removal of fees for novel relief applications recognising the industry-benefits that often result from these activities.
In preparation for the 1 July 2018 fees-for-service full cost recovery, the Australian Government seeks stakeholder feedback on three areas associated with the implementation and operation of the model: 1) proposed fees-for-service model; 2) methods of ASIC stakeholder engagement and accountability; and 3) competition and innovation aspects.