ASIC industry funding model passes Senate

Following on from our post last year (ASIC’s industry funding model – the long and the short of it) on ASIC’s industry funding model, the ASIC Supervisory Cost Recovery Levy Bill 2017 passed through the Senate on 15 June 2017.

Under the industry funding model, those entities regulated by ASIC will now bear its costs as opposed to ordinary taxpayers.  Further, ASIC expects that good conduct in the market will reduce supervisory expenses, thereby providing an incentive for regulatory compliance.

The passage of this legislation through the Senate provides not only certainty in terms of ongoing resource allocation for ASIC but also greater transparency through the publication of ASIC’s expenditure and subsequent accountability for its performance and regulatory priorities.

The regulatory framework for the operation of the funding model will be released ahead of it taking effect on 1 July 2017.

Ben Wood and Jeremy Harrison

ASIC’s industry funding model – the long and the short of it

Last week Treasury released a proposals paper seeking feedback and comments on the revised model for the proposed industry funding of ASIC.  The proposals paper sets out an updated version of the model first proposed by Treasury in late 2015.  The updates are a result of extensive consultation with industry.

Round table meetings are scheduled during the week commencing 28 November 2016 with the formal consultation period scheduled to end on 16 December 2016.

Draft legislation is expected to be available in March 2017, with the model to commence in the second half of 2017.  The first payable invoices are expected to be issued in January 2019 to recover ASIC’s 2017-18 costs.