ASIC Funding Model Passes Parliament

The financial services sector will contribute to industry funding of ASIC from 1 July this year after legislation creating the funding model passed through the Senate.

Minister for Revenue and Financial Services, Kelly O'Dwyer

Minister for Revenue and Financial Services, Kelly O’Dwyer

The ASIC Supervisory Cost Recovery Levy Bill 2017, which passed through the upper house on 15 June 2017, was first suggested by the Federal Government in April 2016 and follows recommendations from the 2013 Senate Inquiry into ASIC’s performance and the 2014 Murray Financial System Inquiry.

The Minister for Revenue and Financial Services, Kelly O’Dwyer said the funding model was “…a critical component of the Government’s plan to improve consumer outcomes in the financial services sector”.

O’Dwyer also said the model would improve equity in financial services “as only those entities that are regulated by ASIC and create need for regulation will bear its costs, rather than ordinary Australian taxpayers”.

ASIC chair, Greg Medcraft said the passing of the legislation was supported across the political spectrum and was an important milestone for ASIC and those it regulated.

“Industry funding, in one form or another, applies to other areas of public oversight in Australia and in many comparable economies around the world. Not only will the different elements of the broad business sector more fairly share the load, but the taxpaying public will benefit through the more accountable use of the funds provided for the task,” Medcraft said.

O’Dwyer said further regulations providing details on the operation of the funding model would be released before its commencement on 1 July, however, the cost per adviser has been estimated to be $960 per year (see: Proposed ASIC Funding Model Would Cost $1,000 Per Adviser)