AFSL and ACL holders are required to submit their business activity metrics by 27 September 2018.

You need to submit your business activity metrics via the Regulatory Portal.  You can do this using the specific industry funding security key and ASIC identifier provided to you by ASIC. You can access ASIC’s Regulatory Portal here.

Civil penalties apply for failure to lodge by the due date, so it’s important all AFSL and ACL holders take action to lodge the metrics as soon as possible.

What are the Business Activity Metrics?

The Industry Funding Model commenced on 4 July 2018, requiring AFSL and ACL holders to contribute to ASIC’s regulatory costs each financial year. The Industry Funding Model will allow ASIC to meet its goals set out under the ASIC Capability Review. You can refer to our previous article ‘Industry Funding Model for ASIC Moving Closer’ for more information.

How are the Business Activity Metrics Calculated?

ASIC will use the business activity metrics provided to calculate the levies payable for each regulated subsector in the financial year. The type of levy and the formula used to calculate the amount of levy payable varies depending on the size and levels of business activity.

ENTITY TYPESSUBSECTORS
Credit Licence• Credit Provider
• Credit Intermediary
Companies• Large proprietary company
• Small proprietary company
• Listed corporations
• Unlisted public company
AFSL Holders• Licensees that provide personal advice/general advice to retail/wholesale clients that are relevant/not relevant financial products
• Credit rating agency
• Deposit product providers
• Payment product providers
• Margin lenders
• Wholesale trustees
• Risk management product providers
• IDPS operators
• MDA providers
• Retail OTC derivatives issuers
• Securities dealer
• Insurance product providers
• Insurance product distributors
• Responsible entities
• Custodians
• Traditional trustee service company providers

Business activity metrics are calculated on the following basis:

  • Flat levy;
  • Graduated levy; or
  • Combination of the above.
LEVY BASISCOSTS
Flat LevyASIC regulatory costs shared equally between the entities operating in the same subsector.
Graduated LevyAll entities in a subsector must pay:
• A minimum levy; and
• An additional graduated levy based on size and level of business activity within the subsector.

You can also refer to our previous article ‘ASIC’s Letter to all AFSL and ACL Holders – Action Required by September 2018 for Industry Funding’ for more information on ASIC’s new Regulatory Portal.

Sophie Grace can assist you to obtain access to ASIC’s Regulatory Portal and submit your business activity metrics. Contact us today for further assistance.