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.
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:
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