The Turnbull Government is committed to ensuring that the Australian Securities and Investments Commission (ASIC) has the resources and powers it needs to combat misconduct in Australia's financial services industry and promote trust and confidence in the financial sector.
The Government has today introduced into Parliament legislation on the second phase of the ASIC industry funding model – fees-for-service.
Fees-for-services relate to fees ASIC charges for specific activities, including licence applications or variations and applications for registration. Fees associated with registry activities are excluded from the scope of this model. Historically, these services and activities only attracted a nominal fee, however under the new regime, the fees will reflect ASIC's actual costs.
"No longer will Australian taxpayers have to subsidise any difference between the fee an entity pays and the actual costs incurred by ASIC, ensuring ASIC's costs are borne by those that have created the need for it," said the Hon Kelly O'Dwyer MP, Minister for Revenue and Financial Services.
This is the final aspect of the ASIC Industry Funding Model and will commence from 1 July 2018.
"The industry funding model promotes equity, encourages greater regulatory compliances, and enhances ASIC's transparency and accountability. These Bills will strengthen ASIC's capabilities to ensure it is an effective regulator."
The framework will ensure ASIC is transparent and held accountable throughout its periodic review in setting fee amounts by involving a public consultation process utilising a cost recovery implementation service. As an additional accountability mechanism, ASIC will include industry funding on the agenda of their external committees and panels for consideration.
The Government will review the industry funding model accountability framework in three years.
This legislation builds on other actions the Turnbull Government has taken to boost the resources and capability of ASIC, including providing $121.3 million in additional funding to bolster ASIC's investigative and surveillance capabilities, establishing and implementing the recommendations of the ASIC Enforcement Review Taskforce, consulting on a new product intervention power for ASIC, and appointing a new Chairman and creating a new second Deputy Chairman role which will have focus on enforcement.