What Regulatory Services do ASIC’s Fees for Service Apply To?
As discussed in our recent blog article, Eager to Know How Much You Have to Pay for ASIC’s Regulatory Costs? approximately 90% of ASIC’s regulatory activities will now be recovered in the form of Industry Funding Levies and the remaining 10% recovered via ASIC’s ‘Fees-for-Service’.
ASIC’s fees for service will impact a range of industry stakeholders including Australian Credit Licensees, Australian Financial Services (AFS) Licensees, Responsible Entities and more. The fees apply to specific regulatory activities including:
|Compliance Review of documents lodged with ASIC||AFS Licensees (all sub-sectors)
Companies (all sub-sectors)
|Licence Applications or Variations||Australian Credit Licences (all sub-sectors)
AFS Licensees (all sub-sectors)
Market Infrastructure providers (all sub-sectors)
|Registration Application Services||Responsible Entities
Registered Company Auditors
|Applications for Relief||All sectors and sub-sectors|
Prior to the implementation of the Fees-for-Service, only a small portion of ASIC’s costs were recovered directly from industry participants, leaving ASIC exposed to the risk of funding cuts and a lack of transparency for the industry. Under the new Fees-for-Service, ASIC’s costs for specific regulatory activities requested by an entity will be fully recovered from that entity. The Australian Government led several rounds of consultation with industry to refine and settle the fees for service model.
Fees for online licence applications are one of the notable changes and those applying for new licences should consider these updated figures in their cashflow projections (refer to the table below).
(From 4 July 2018)
(Including % Increase)
|AFSL Application - company||$2,233 – $7,537 *|
*depending on the complexity
of the application and
whether you deal with retail or wholesale clients
(35% - 358% increase)
|ACL Application - company (including credit provider authorisation)||$4,624||$1,160
|ACL Application - company (excluding credit provider authorisation)||$2,055||$1,160
For further information on the exact fees refer to ASIC’s Information Sheet 30.
ASIC released a Cost Recovery Implementation Statement (CRIS) which provides information on how they will implement fees for service for their regulatory activities. This statement follows on from the Cost Recovery Implementation Statement: Levies for ASIC industry funding (2017–18) which was published for consultation in October 2017. Both Cost Recovery Statements will be combined into one CRIS by October 2018. The finalised CRIS was released on 3 July 2018 and is accessible here.
We have previously discussed changes to ASIC’s Industry Funding Model in the following blog articles:
- ASIC’s AFSL and ACL Application Charges Set to Increase on 1 July 2018
- The Beginning of a New Era in ASIC’s Regulatory Regime
- Industry Funding Model for ASIC Moving Closer
There are five pieces of legislation that relate to ASIC’s Fees for Service.
- the Corporations (Fees) Amendment (ASIC Fees) Bill 2018
- the Superannuation Industry (Supervision) Amendment (ASIC Fees) Bill 2018
- the National Consumer Credit Protection (Fees) Amendment (ASIC Fees) Bill 2018
- the Superannuation Auditor Registration Imposition Amendment (ASIC Fees) Bill 2018, and
- the Treasury Laws Amendment (ASIC Fees) Regulations 2018.
Keep Me Informed
We will continue to monitor the developments in relation to ASIC’s Industry Funding Model. To stay up to date on any further changes that may affect your business, you can subscribe to the Sophie Grace newsletter below. Should you wish to discuss the model or have any questions, please contact us.
Ivana is responsible for all Marketing activities for Sophie Grace and assists both the Compliance and Legal teams with a particular focus on Compliance services. Ivana focuses on website development, management and ensures clients receive the latest regulatory updates through Sophie Grace social media channels, the newsletter and website blog page. Ivana also assists the Compliance team with drafting and amending compliance documentation, preparing AFSL and ACL Applications and implementing ongoing compliance solutions.