EXECUTIVE SUMMARY
Today the Government released a consultation paper seeking stakeholder views on the proposed introduction of an industry funding model for the regulatory activities of the Australian Securities and Investments Commission (ASIC).
ASIC has welcomed the release of the consultation paper following a significant increase in the use of ASIC’s resources that far exceeds the revenue collected from the sectors it regulates.
THE PROPOSED INDUSTRY FUNDING MODEL
The proposed industry funding model will be based on the Government’s Cost Recovery Guidelines where the cost of ASIC’s regulation will be recovered directly from the sectors and entities that create the need for regulation via a system of levies and fees.
An industry funding model for ASIC would:
- ensure that the costs of the regulatory activities undertaken by ASIC are incurred by those creating the need for regulation, rather than tax payers;
- establish price signals to drive economic efficiencies in the way resources are allocated in ASIC: and
- increase ASIC’s accountability to its stakeholders.
PUBLIC CONSULTATION
The Hon. Josh Frydenberg has advised that the Government is committed to broad consultation with the community on the potential introduction of industry funding for ASIC.
The Government’s decision will also be informed by the findings of ASIC’s Capability Review which will assist the Government’s consideration of whether or not to accept the Financial System’s Inquiry recommendation that ASIC’s regulatory activities should be funded by industry participants.
WHAT IS THE NEXT STEP?
The Hon. Josh Frydenberg has invited all interested parties who have an interest in the efficient operation of ASIC to make submissions before 9 October 2015.
Submission can be forwarded to: [email protected]
FOR FURTHER INFORMATION
More details are available at:
IMPORTANT NOTICE
This document is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.
Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners of Radford Lawyers Pty Limited are members of the scheme.
Recent Comments