The cost of doing business with the corporate regulator has gone up under draft legislation supporting the new funding model for ASIC, released by Treasury yesterday.
Under the draft reforms, the hourly rate charged by ASIC will more than double from $70 to $175.95 from 1 July. The new fee structure will also see substantial amendments made to the caps placed on how much ASIC can actually charge in fees in total.
The $10,000 cap will increase to $200,000; while the $50,000 cap will climb to $300,000 along with the $100,000 cap.
In regards to establishing a self-managed superannuation fund, fees have increased and ASIC will also now be able to charge new fees for an application to vary or revoke the conditions or cancel the registration of an approved SMSF auditor.
Minister for Revenue and Financial Services Kelly O'Dwyer said that under the new fees-for-service regime, fees for activities - such as processing a licence application - will better reflect ASIC's actual costs.
"Industry funding ensures that the costs of regulation are borne by those that have created the need for it, rather than the Australian public. These proposed amendments allow ASIC to better align its fees, by enabling ASIC to charge a cost reflective fee for the services it provides for a specific entity," O'Dwyer said.
The introduction of the new funding model was a key recommendation of the Murray Financial System Inquiry and is intended to strengthen ASIC while better protecting Australian consumers. The model excludes fees associated with registry activities.
Consultation on the draft legislation will close on 24 April for the Bill related component and on 1 May for the regulations related documents.