On 26 June 2019, ASIC published the indicative industry sector levies for Financial Year (FY) 2018/19 with details on how the regulatory costs for FY 2017/18 have been allocated as part of the final Cost Recovery Implementation Statement (CRIS). Correspondence was also sent to all financial service and credit providers requesting the completion of the Business Activity Metrics for Financial Year (FY) 2018/19.
If you did not receive this correspondence from ASIC, you should ensure all contact details listed on the ASIC Regulatory Portal are correct and up to date and diarise the timeframe for submitting your business activity metrics to ensure they are lodged with ASIC prior to the 27 September 2019 deadline.
Now is a good time to consider the impact the industry funding levy has on your cashflow – use the data in the CRIS to estimate your invoice. All ACL and AFSL holders should ensure they prepare regular cashflows and that the industry funding levy is included as an expense item.
The indicative levies released in the CRIS are a guide only, with the final levies to be released in December 2019 ahead of invoices being issued in January 2020.
What ASIC Activities are you Paying for?
- Supervision and Surveillance – via the review of breach reports, conducting interviews and collecting documentary information, using information gathering powers (for example, under Section 912C of the Corporations Act);
- Enforcement – undertaking investigations, litigation, administrative decision making and handling appeals;
- Industry Engagement – consultation with industry, attending industry liaison meetings, responding to inquiries and requests for information;
- Education – teaching of financial literacy in schools and workplaces, publications on ASIC’s MoneySmart website, developing tools for consumers;
- Guidance – developing and consulting on regulatory proposals, issuing ASIC legislative instruments;
- Policy Advice – researching innovation, proposals on law reform, submissions to parliamentary and government inquiries on law reform; and
- Financial Capability Work – supporting financial literacy, delivery and providing access to financial information, supporting partnerships with other organisations.
Key Changes to Industry Funding
The CRIS details recent changes made to the industry funding levies, including:
- Medium amount credit providers are now included in the “small amount credit providers” subsector;
- Responsible entities and wholesale trustees – the industry metric has been amended to avoid double counting of assets for the purposes of calculating the levy for entities which fall within both categories;
of various new subsectors, including:
- entities subject to close and continuing monitoring;
- benchmark administrator licensees;
- new specialised market operators;
- established specialised market operators; and
- operators of notified foreign passport funds.
Industry funding was a key recommendation in the 2014 Murray Financial System Inquiry and the new model became law in 2017. ASIC is required to publish a CRIS each year under the Australian Government Charging Framework, specifically the Australian Government Cost Recovery Guidelines.
- Cost Recovery Implementation Statement (CRIS) – 2018-19
- Your Next ASIC Invoice – Indicative Costs of ASIC’s 2018-2019 Regulatory Levies
- ASIC Regulatory Levies – Answers to the Questions we’ve been Asked!
Should you have any questions in relation to ASIC’s Regulatory Costs and the estimated levies will be for your business, please contact us.