The Government has introduced an industry funding model for the Australian Securities and Investments Commission (ASIC), with the ASIC Supervisory Cost Recovery Levy Bill 2017 and related bills being passed through the Senate.
It is hoped the industry funding model will improve consumer outcomes in the financial services sector, with possible benefits including:
- improving equity, as only those entities that are regulated by ASIC and create need for regulation will bear its costs, rather than ordinary Australian taxpayers;
- encouraging regulatory compliance, as good conduct will drive down supervisory levies;
- improving ASIC’s resource allocation, by providing it with richer data to better identify emerging risks; and
- enhancing ASIC’s transparency and accountability through the publication of its expenditure, explain its regulatory priorities, and account for its performance.
It is also hoped it will build on other measures, including:
- comprehensive reviews of ASIC’s capabilities and enforcement regime ensuring ASIC has the powers and penalties to deter misconduct and boost consumer confidence; and
- the $127.2 million ASIC funding package, which will significantly enhance data analytics and surveillance capabilities and facilitate proactive enforcement.
The Government has indicated that regulations that provide additional detail on the operation of the industry funding model will be made shortly, ahead of the commencement of the model on 1 July 2017.