ASIC provides updated funding framework

17-Jul-2017

By Megan Tran

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After industry consultation, ASIC has provided an updated framework for the calculation of levies for financial services industry sectors, following the new industry funding model for the regulator which came into place on 1 July.

In a statement, ASIC said the first invoices for collection of the levies would be issued to relevant firms in January 2019 to recover costs for regulatory services for the 2018 financial year.

For the financial advice sector, a fixed levy of $1500 has been introduced for licensees authorised to provide advice on relevant products, with a further graduated levy payable based on the number of advisers authorised under the licensee.

ASIC chairman Greg Medcraft said more detail around the new funding structure would be provided in a cost recovery implementation statement later this year.

The regulator further outlined that securities dealers executing more than $250,000 worth of transactions a year would be subject to a graduated levy which would exclude advisers who only provided advice on quoted products, products traded on a foreign financial market or basic banking products.

For the insurance sector, all insurance product issuers - including licensees who arrange for the issue of insurance products under an intermediary authorisation within an unlicensed APRA-regulated insurer – would be subject to a flat rate levy.

Responsible entities of managed investment schemes would also be charged a graduated rate levy based on the value of the assets in a particular scheme, while master trust and wrap providers would be charged a minimum levy of $10,000.

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