Ensuring the fair allocation of levies to reflect the limited regulatory issues ASIC has to deal with in the general insurance space has been a key focus in NIBA’s submission to Treasury in response to its ASIC funding bills.
Treasury released three bills for consultation in February this year – the legislation necessary to support an industry funding model to recover ASIC’s regulatory costs through annual levies and fees-for-service.
NIBA has been heavily involved in consultation on the issues and has now made a submissions focusing on achieving:
– a fair allocation of levies to reflect the limited regulatory issues affecting NIBA members compared to other sectors
– a cost and time effective reporting regime to assist ASIC in allocating levies and members in meeting their reporting obligations.
The industry funding model covers all entities that are regulated by ASIC (which will catch brokers). The levy will be payable by entities in the following financial year once ASIC has issued them a notice setting out their liability for the levy. The first year will be the 2017-18 financial year starting on 1 July 2017.
The objectives of the regime are to:
– ensure that the costs of the regulatory activities undertaken by ASIC are borne by those creating the need for regulation, rather than all taxpayers
– establish price signals to drive economic efficiencies in the way resources are allocated in ASIC
NIBA is having further discussions with Treasury on the proposed funding model.