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?
|Subsector||Actual 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 intermediary||Minimum 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 products||Minimum levy of $1,500 plus $934 per adviser|
|Payment product providers||$1,051|
|Risk management product providers||$5,202|
|IDPS operators||Minimum levy of $10,000, plus $4.63 per $10,000 of revenue|
|Retail OTC derivative issuers||$45,592|
|Securities dealer||Minimum levy of $1,000, plus $6.64 per $1 million of annual transaction turnover|
|Insurance product providers||Minimum 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 advisers||Minimum 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.
- For more information on the industry funding legislation, please refer to our previous blog article, “Attention All AFSL and ACL Holders: Have you Submitted your Industry Funding Business Activity Metrics? The Deadline is Approaching”.
- To read ASIC’s article on regulatory costs, please refer to Media Release 18-368.
Julie works with the Compliance and Legal Team with a focus on compliance and legal services. Julie assists with document preparation for participants in the financial services industry and with conducting legal research. Julie assists the compliance team in implementing ongoing compliance support, updating procedural documentation and assisting clients with the preparation of AFSL and ACL applications. Julie also assists in the preparation of legal documentation and legal research. Prior to joining Sophie Grace, Julie worked as an In-House Legal Counsel for a property development company, where she assisted with agreements and contracts, as well as assisting in banking and financial services. Julie has a Bachelor of Arts (Commercial Law) and a Bachelor of Law from Macquarie University. She is admitted as a solicitor in NSW.