The federal government has today introduced the final bill for the Australian Securities and Investments Commission (ASIC) industry funding model into Parliament.
The fees-for-service framework covers the fees ASIC charges for specific activities, including licence applications or variations, and applications for registrations, which will commence from 1 July.
Fees associated with registry activities are excluded from the scope of the model.
Historically, these services and activities only attracted a nominal fee, however, under the new regime, the fees will reflect ASIC’s actual costs.
Revenue and Financial Services Minister Kelly O’Dwyer said the government was committed to ensuring the corporate regulator has the resources and powers it needs to combat misconduct in Australia’s financial services industry, and promotes trust and confidence in the financial sector.
“No longer will Australian taxpayers have to subsidise any difference between the fee an entity pays and the actual costs incurred by ASIC, ensuring ASIC’s costs are borne by those that have created the need for it,” O’Dwyer said.
“The industry funding model promotes equity, encourages greater regulatory compliances and enhances ASIC’s transparency and accountability.
“These bills will strengthen ASIC’s capabilities to ensure it is an effective regulator.”
The framework ensures ASIC is transparent and held accountable throughout its periodic review in setting fee amounts by involving a public consultation process using a cost recovery implementation service.
As an additional accountability mechanism, ASIC will include industry funding on the agenda of its external committees and panels for consideration.
The government will review the industry funding model accountability framework in three years.
This legislation builds on the government’s moves to boost the resources and capability of ASIC, including providing $121.3 million in additional funding to bolster the regulator’s investigative and surveillance capabilities, and establishing and implementing the recommendations of the ASIC Enforcement Review Taskforce.
The government has also consulted on new product intervention powers for ASIC, and appointed a new chairman and created a new second deputy chairman role, which will have a focus on enforcement.
