The Mortgage & Finance Association of Australia (MFAA) has managed to secure an extended deadline for industry submissions on the industry funding model proposed by the Australian Securities & Investments Commission (ASIC).
In discussions with ASIC and the Treasury, the MFAA advised that the model was based on incomplete data, said Cynthia Grisbrook, chairman of the MFAA.
As a result, ASIC will work to revise the model over the coming weeks as it receives updated data from the industry, she added.
“In order to facilitate this, and at the request of the MFAA, ASIC and Treasury have agreed to move the date by which industry submissions in the credit provider and credit intermediary categories need to be lodged from 16 December 2016 to 16 January 2017,” said Grisbrook.
“We have spent a lot of time working with Treasury and ASIC this year to develop a good relationship. It’s really important that we work with the regulators rather than in opposition of them,” she told Australian Broker
This extension applies to substantive submissions on the proposed model as opposed to data submissions previously requested by the Treasury, she added.
This prior data request was required for ASIC to compile the necessary data and make relevant adjustments to its funding model so the outcome is accurate and fair for all industry participants.
“There was concern with the original data that came out and ASIC realised very quickly that that data may not have been as accurate as they would have liked,” Grisbrook said. “So they requested this data from the aggregators and lenders to ensure that no one’s going to be financially handicapped by this model.”
She reiterated that further input by impacted MFAA members on this data should still be provided to ASIC by today (16 December) despite the commission being happy to receive submissions by 31 December.
“The sooner ASIC get the data, the sooner they can start working on it and the more time we have to accommodate that in our submission,” Grisbrook said.
Provided with more accurate data, ASIC will be able to provide a revised estimate of levies that may be paid by industry participants. However these updated levies will still only be indicative of what may come and are only provided to help brokers better understand how the levy could apply to their business, she stressed.
New ASIC funding model a “tax” on brokers, M.F.A.A. warns
M.F.A.A. appoints new CEO
M.F.A.A. talks remuneration with government