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Important Update ASIC Industry Funding

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Background

In July 2015 the Federal Government established an expert panel to review the capabilities of ASIC, including ASIC’s ability to perform its duties as a regulator.

The panel made a number of findings, including  on the ability of ASIC to carry out its supervisory activities, and the funding required to do so.

On 20 April 2016, the Government announced a number of reforms, including a plan to introduce an “industry funding model” for ASIC, whereby those industries subject to ASIC’s supervision contribute to the cost of regulation.

There is currently an ongoing program of industry consultation by ASIC and Treasury to define the metrics and parameters of how the industry funding model will work with respect to all industries, including the provision of credit by lenders and brokers.

As part of our engagement with Treasury and ASIC, we are seeking to ensure that the funding model that is adopted continues to allow healthy competition, sustainable competitive growth in our industry, and avoids as far as possible any unintended consequences.

FAQs

How do I find out more about this?

For those of you who are interested, you can download a copy of the proposal paper  from Treasury’s website at https://consult.treasury.gov.au/financial-system-division/asic-industry-funding

Please note that at this stage, the proposed levies and fees contained in the proposal paper are highly unlikely to be adopted – one key element of the consultation period is to ensure that the eventual fees are fair and sensible.

What will this mean for my  business?

At this stage there is still a lot of work to be done before the industry funding model is finalised and introduced.

The practical effect of the change for our industry is that the way the lodgement fee for an annual compliance certificate is calculated will be changing – some ACL holders will see fee increases, whilst others will see fee decreases.

Please note that the proposed fee changes are a long way from being finalised. 

What is Connective doing to ensure that a sensible funding model is implemented?

We are working closely with Treasury, ASIC and industry players so they understand any concerns we have. This includes our participation at Industry Roundtables, discussions with key stakeholders at ASIC and written submissions to Treasury.

When is the industry funding model due to commence?

The second half of 2017.