ASIC has released its Report 535 ASIC cost recovery arrangements: 2017-18, following the passing of legislation on 15 June 2017.
The report details how regulated entities will share the costs of ASIC’s regulatory services for their sector, with the first invoices being issued in January 2019 to recover costs for regulatory services for the 2017/18 financial year.
According to the report, the invoices will be based on the number of regulated entities in a sector and, in most cases, information provided by regulated entities via ASIC's new online portal.
An area of contention was the inclusion of registered liquidators under the new funding model, with University of Melbourne Professor Helen Anderson recently expressing concerns that the levy on registered liquidators was an “unnecessary burden” on an already strained profession.
The report reveals that the fixed component of the levy on registered liquidators has been halved from $5,000 to $2,500 following industry consultation.
The graduated component of the levy on registered liquidators will be based on the number of new and ongoing external administration appointments the liquidator accepts, and the number of prescribed events notified to ASIC and the public during the year.
The funding model also places levies on the financial advice sector, superannuation trustees, payment product providers, credit intermediaries, wholesale trustees, securities dealers, investment banks, and the insurance sector, among others.
“We are pleased to be able to confirm the framework to help industry prepare for this new regime and thank industry members for their contribution,” ASIC chair Greg Medcraft said.
“ASIC will continue to support industry to comply with their obligations as they become due. Further details will be provided in a Cost Recovery Implementation Statement later this year.”