ASIC has published its regulatory costs for Financial Year 2017-18.
Commissioner Cathie Armour said this was the first year of a new industry funding model that requires ASIC to recover the actual amount spent in regulating the industry sectors under its jurisdiction.
“Our goal is ensuring a fair, strong and efficient financial system for all Australians and lies at the heart of all our regulatory activities. We have been working with industry to implement the new model and making public the cost of our regulation marks a significant milestone in this process,” she said.
Earlier this year, ASIC’s regulated population was required to complete the important process of submitting business activity metrics via the ASIC Regulatory Portal. ASIC will use these metrics to calculate each entity’s share of the regulatory costs for the sectors in which they operate and will issue invoices in early 2019.
The actual cost recovery amount from insurance product providers for the year was $13.132 million where as the actual levy amount was a minimum levy of $20,000 plus $2.58 per $10,000 of revenue above the
$5m threshold, the corresponding amounts for product distributors was $0.943 million and $310 and from risk management product providers was $0.286 million and $5202.
The corporate regulator has indicated that it will also issue invoices to those that did not meet their legal obligations to register and submit details via the portal. ASIC has calculated levies payable by industry to recover these costs – which total $236.6M – as part of the Government’s industry funding arrangements that became law in 2017.
This is the first year of the new regime where ASIC will recover most of its regulatory costs from the regulated industries.