Today the Albanese Government has released the Final Report on the Review of the Australian Securities and Investments Commission (ASIC) Industry Funding Model (IFM).
The Review was led by Treasury in consultation with ASIC, the Department of Finance and the Department of the Prime Minister and Cabinet to ensure the ASIC IFM settings remain appropriate in the longer term.
The Review found that the settings of the ASIC IFM remain broadly appropriate but that refinements can be made within the existing framework to improve the way regulatory costs are recovered and to communicate IFM settings to industry more effectively.
The Review makes 10 recommendations, of which four are directed to ASIC. Key recommendations include:
- spreading the costs of certain regulatory activities (taking action against unlicenced operators, regulating emerging sectors, and capital expenditure) either across a wider population or over time to recognise the wider benefits of those activities
- undertaking further consultation to ensure sub‑sector definitions, metrics and formulas used to calculated levies remain fit‑for‑purpose
- delegating the fee‑setting power to ASIC to ensure fee amounts continue to reflect full cost recovery
- ASIC to enhance its reporting, transparency, and consultation arrangements on the IFM
The Albanese Government is committed to maintaining appropriate industry funding arrangements for ASIC. The Government will work with ASIC, industry, and other stakeholders to implement these recommendations.
The Government also supports ASIC taking action to implement the recommendations directed to it, to improve its engagement with industry and to streamline its reporting arrangements, particularly through its Cost Recovery Implementation Statement.
The Review also considered the temporary levy relief for personal financial advice licensees that was in place for 2020‑21 and 2021‑22. The temporary levy relief for this sub‑sector will not be extended further. The Review recommends reviewing each of the four sub‑sectors that fall within the financial advice sector and whether the existing sub‑sector definitions, metrics and formulas remain appropriate. This will be progressed alongside implementation of the Government’s Delivering Better Financial Outcomes package which includes our response to the Quality of Advice review.
The Government thanks industry and other stakeholders for their constructive engagement throughout the review process.
The Final Report and submissions to the Review are available on the Treasury website.
