On 7 December 2014, the Government released the Final Report of the Financial System Inquiry, an inquiry which sets out a 'blueprint' for Australia's financial system over the coming decades.
The Financial System Inquiry for Australia's current regulatory architecture has many strong characteristics, and does not require major change. However, the Inquiry does made a number of actions to strengthen the transparency, accountability and capabilities of Australia's financial regulators. In the case of the Australian Securities and Investments Commission (ASIC), the Financial System Inquiry recommended that the Government should move to adopt an industry funding model, similar to that already in place for other Australian regulators.
The Financial System Inquiry's found that an industry funding model for ASIC could provide more funding certainty and enhance the transparency of ASIC's costs and funding.
Submissions on this consultation paper, together with the findings of the ASIC Capability Review, which is due to report to Government by the end of 2015, will assist the Government's consideration of whether to accept the Inquiry's recommendation that ASIC’s regulatory activities should be funded by industry.
Industry roundtables will also be held during the consultation period to give stakeholders an opportunity to share their views.
The Government's broader response to the recommendations of the Financial System Inquiry will be released later in 2015.