Following consultation earlier this year, the following Bills to implement an industry funding model to recover the regulatory costs of ASIC have been introduced into Parliament:
- ASIC Supervisory Cost Recovery Levy Bill 2017;
- ASIC Supervisory Cost Recovery Levy (Collection) Bill 2017; and
- ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Bill 2017
- entities that are regulated by ASIC will be required to provide a return to ASIC that includes information that will be used to calculate the levy that will recover ASIC’s regulatory costs for a financial year. The levy will then be payable in the following financial year, once ASIC has issued the leviable entity with a notice setting out its liability for the levy;
- the objectives of the model are that the total levy paid by all leviable entities should not exceed ASIC’s total regulatory costs for a particular financial year, and also that the total amount of levy payable by all leviable entities in a particular class, sector or sub-sector should not exceed ASIC’s regulatory costs for that class, sector or sub-sector;
- details of how the levy will be calculated to be set out in separate regulations, and will be based on certain measures of business activity that will be proxies for ASIC’s regulatory costs for particular entities;
- ASIC will be required to publish information used to calculate the levy in an annual legislative instrument;
- where an entity has failed to provide a return to ASIC, it will be subject to a strict liability criminal offence, and it may also have a default assessment made against it where it has failed to provide a return, or the information provided in the return is false or misleading; and
- leviable entities that do not pay a levy when it is due and payable will be subject to a late payment penalty, and where entities have failed to pay a levy, late payment penalty or shortfall penalty for a 12 month period, ASIC may take certain administrative actions, including suspension or cancellation of licences or registration.
If the Bills are passed, the new model is to commence on 1 July 2017.