The Albanese Government has commenced a review of the Australian Securities and Investments Commission (ASIC) Industry Funding Model (IFM) and has issued a Terms of Reference to guide the Review.
The ASIC IFM commenced in July 2017 following a recommendation of the Murray Financial System Inquiry to introduce a cost recovery model for ASIC. The IFM aims to recover the costs of ASIC’s regulatory activity from entities in the sectors that create the need for regulation.
Given the ASIC IFM has now been in place for five years, it is appropriate to review it at this point and ensure the settings of the IFM remain appropriate in the longer term.
The Review will be forward looking and focused on identifying refinements to the IFM that may be required to ensure its settings remain appropriate. The Review will also have regard to the temporary levies relief provided to personal financial advice licensees in respect of 2020-21 and 2021-22.
The Review will be led by Treasury, in consultation with ASIC, the Department of Finance and the Department of the Prime Minister and Cabinet.
Treasury will undertake a public consultation process later in the year, which will provide an opportunity for stakeholders to provide input into the Review.
The Albanese Government is committed to ensuring that ASIC, and the frameworks it uses, are sustainable, in step with the times, and appropriate for today’s financial sector.