ASIC’s Regulatory Levies have been Released – What are you Required to Pay?

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ASIC have released actual levy amounts for the 2017-18 financial year. ASIC regulated entities should expect to receive their invoice this month, January 2019.

The table below identifies the actual levy amounts divided into subsectors. AFSL holders should make sure the levy is included in cashflow projections moving forward to avoid any inadvertent breaches of their financial requirements in RG166.

ASIC has calculated the costs of its regulatory services to be $236.6 million. Around 90% of ASIC’s regulatory activities will be recovered through the levies.

The key points addressed in ASIC’s summary of the 2017-18 levies include:

  • There are approximately 50 industry subsectors. The minimum levy imposed on each entity will be based on the activities it is licensed to perform; and
  • Information as to how individual entities can calculate their specific levy invoice amount.

How much are you Liable to Pay?

SubsectorActual Levy Amounts FY 2017-18
Australian Credit Licensee (“ACL”)
Credit provider (including small amount credit providers)Minimum levy of $2,000 plus $0.39 per $10,000 of credit provided above $100 million (for other than Small Amount Credit Contracts (“SACCs”))
Credit intermediaryMinimum levy of $1,000, plus $16.48 per credit representative
Australian Financial Services Licensee (“AFSL”)
Licensees that provide general advice to retail clients$592
Licensees that provide personal advice to retail clients on relevant financial productsMinimum levy of $1,500 plus $934 per adviser
Payment product providers$1,051
Margin lenders$6,907
Wholesale trustees$6,004
Risk management product providers$5,202
IDPS operatorsMinimum levy of $10,000, plus $4.63 per $10,000 of revenue
MDA providers$3,911
Retail OTC derivative issuers$45,592
Securities dealerMinimum levy of $1,000, plus $6.64 per $1 million of annual transaction turnover
Insurance product providersMinimum levy of $20,000 plus $2.58 per $10,000 of revenue above the $5m threshold
Insurance product distributors$310
Responsible entities$7,000 minimum levy plus $16.30 per $1 million of assets above the $10m threshold
Corporate advisersMinimum levy of $1,000 plus $11.45 per $10,000 of revenue above the $100,000 threshold

For a comprehensive list of the subsector levies, have a look at the ASIC industry funding: Summary of 2017-18 levies,

ASIC regulated entities were required to register and submit business activity metrics via the Regulatory Portal before September 2018 to allow ASIC to appropriately calculate the levy. Those entities who did not register and submit their details by the appropriate date will nonetheless receive an invoice with an estimated levy. More on this can be found in our recent blog article “ASIC’s Letter to all AFSL and ACL Holders – Action Required by September 2018 for Industry Funding”.

It is important that you pay your invoice within the appropriate time period provided, as late payments will attract 20% per annum interest.

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