ASIC outlines industry funding costs

ASIC has released the forecast regulatory costs for industry participants as part of its new industry funding model.

These costs vary across industry sectors. In the registered liquidator sector, for example, companies will have a minimum levy of $2500; this can be increased based on the number of ongoing external administration appointments at the beginning of the financial year and the number of prescribed documents lodged with ASIC during the financial year.

In the deposit-taking and credit sector, credit intermediaries will be charged a graduated levy based on the number of authorised representatives the intermediary has at the end of the financial year, and payment product providers will pay a minimum flat levy of $2000. From 2018 onwards, this levy will be graduated based on revenue from payment product provider activity.

Superannuation trustees will pay a levy based on the total value of assets at the end of the financial year, and responsible entities will pay a sum based on the total value of assets in registered schemes they operate.

Wholesale trustees will a minimum flat levy of $1000; a graduated levy will apply from the 2019 financial year onwards based on the value of assets in all unregistered managed investment schemes issued by the trustee. Operators of investor directed portfolio services will pay a minimum levy of $10,000 which will be graduated based on revenue from activities.

For Australian market licensees and exchange operators, levies will be graduated based on the value of transactions traded on each exchange. Market participants are split into large securities exchange participants and futures exchange participants; both will pay a minimum levy of $9000.

Corporate advisers in investment banks will pay a minimum levy of $1000 which is graduated based on revenue above $100,000, and OTC traders will be charged a minimum levy of $1000. This will be graduated based on the number of full-time equivalent staff engaged in OTC trading activities.

Financial advice licensees that provide personal advice to retail clients on financial products will pay a minimum levy of $1500, which is graduated based on the number of advisers representing said licensee.

ASIC said its cost recovery implementation statement "helps to increase the transparency of ASIC's costs, which strengthens our accountability to industry.  This is particularly important now that regulated entities will receive an invoice for ASIC's regulatory services delivered in the prior year."

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