ASIC funding numbers released

Investment managers and financial advisers were among the leading sectors responsible for funding ASIC last financial year.

Publishing its regulatory costs for FY17-18, ASIC issued a bill worth more than $28 million on the financial advice sector as a result of its new cost-recovery funding.

In addition to the minimum levy of $1500, licensees providing personal advice to retail clients on relevant financial products contributed $934 per adviser in the first year of the new ASIC funding model. These alone totalled more than $25 million.

Conversely, superannuation funds, investment managers and managed accounts providers surrendered about $45 million to the corporate regulator, with responsible entities contributing $22.7 million.

The funding model uses industry submitted business activity metrics to determine each entity's share of regulatory costs, with the regulator due to issue invoices early next year. In total, the wealth management industry is responsible for recovering $236.6 million of the regulator's costs in the last financial year.

ASIC commissioner Cathie Armour said the system was designed to ensure a fairness and efficient financial system.

"We have been working with industry to implement the new model and making public the cost of our regulation marks a significant milestone in this process," Armour said.

"Our goal is ensuring a fair, strong and efficient financial system for all Australians and lies at the heart of all our regulatory activities."

The regulator confirmed small proprietary companies would not have specific funding obligations, with a $4 increase to the annual review fee set to cover the regulatory costs for these entities, in most cases.

Read more: ASICCathie Armour
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