ASIC cost recovery framework finalised

by Miklos Bolza14 Jul 2017
The cost recovery framework for the Australian Securities & Investments Commission (ASIC) has been finalised, incorporating changes made after industry consultation.

The framework is outlined in a report, ASIC Cost Recovery Arrangements: 2017-18, and includes a method for how the levy will be calculated for various groups including credit providers and intermediaries.

The first invoices will be issued in January 2019 and will recover costs for regulatory services provided in the previous 2017/18 financial year. These invoices will be based on the number of regulated entities in a certain sector as well as information gathered through ASIC’s new online portal.

“We are pleased to be able to confirm the framework to help industry prepare for this new regime and thank industry members for their contribution,” ASIC chairman Greg Medcraft said.

“ASIC will continue to support industry to comply with their obligations as they become due. Further details will be provided in a Cost Recovery Implementation Statement later this year.”

The methodology for credit providers has not changed from the initial measures proposed in November last year.

Based on the metric of credit lent, the minimum levy will be set at $2,000 for all credit providers plus a graduated charge per $10,000 of credit provided (other than under a small amount contract) greater than $100m.

For credit intermediaries, a $1,000 minimum levy will be put in place. Additionally, a graduated levy will be charged based on the number of authorised representatives the intermediary had as of 30 June.

The precise figures for these graduated charges will be based on ASIC's 2017-18 budget by subsector which will be published later on this year in October, an ASIC spokesperson told Australian Broker.

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Gov't passes ASIC industry funding bill

Credit services providers to be hit with ASIC levy

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COMMENTS

  • by David 14/07/2017 11:29:31 AM

    So what do Licensees with a number of credit reps do? We have no idea what to charge our credit reps and what fee we are incurring now.

    Imagine if I said to a client - 'I will organise your loan now but I won't tell you what your repayments and interest rate are but you will have to pay whatever it is in full next year.'

    Ridiculous that these incompetent people are meant to be monitoring us when they can't even introduce a single fee and tell us what it is.

  • by Sigh..... 14/07/2017 11:52:13 AM

    So commissions are to reduce, but a one person operation needs to find another $1,000.
    Must be the only occupation where everybody keeps decreasing their income rates, whilst constantly wanting more in return.
    Australia....closed for business.

  • by David R 14/07/2017 11:53:36 AM

    Since we'll effectively be paying the wages of ASIC staff, can we have a say on how many fat cats are employed there? According to their last annual report, 903 of their 1,826 employees (49.5%) are employed on executive level and above. 1 boss per worker sounds a bit steep. They paid out $8.3 million in bonuses last year and over $7.3 million of this was paid to the bosses (exec level & above).