December 12th, 2016
Email to all members: Important Update ASIC Industry Funding
We’re writing to you to keep you informed of some important changes coming to how our industry is regulated by ASIC and Treasury.
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.
We believe that ASIC plays an important role in ensuring that Australia has robust and effective financial regulation, and that ASIC needs to be properly funded in order to effectively carry out its functions.
There has been little awareness or publicity in our industry about the introduction of the industry funding model and we want make sure we keep you up to date on these recent discussions.
The industry funding model is due to commence in the second half of 2017. 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’s Happening Now?
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.
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.
What will this mean for you and your business?
At this stage there is still a lot of work to be done before the industry funding model is finalised and introduced. We will keep you closely informed about how these reforms progress.
For those of you who are interested, you can download a copy of the proposal paper from Treasury’s website. Click here.
Please note 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.
We understand that you may have questions about what this means for you, simply reply to this email and we will respond promptly. Also we will publish all the frequently asked questions on our website. Click here.
Glenn Lees, CEO Connective