Powered by MOMENTUM MEDIA
subscribe to our newsletter

First ASIC invoices to be issued in January

Regulated entities will be invoiced by ASIC in January 2019 for regulatory services provided by the commission for the 2017/18 financial year.

The cost recovery framework for the Australian Securities & Investments Commission (ASIC) will see regulated entities share the costs of ASIC’s regulatory services for their sector.

The framework, outlined in a report released today, identifies industry sectors and provides a methodology for how the levies will be calculated.

According to ASIC, the first invoices will be issued in January 2019 and will recover costs for regulatory services for the 2017/18 financial year.

Levies will also include a clawback of prior year market supervision expenditure that remains unrecovered as at 30 June 2017:

Advertisement
Advertisement

The report confirms that credit providers (other than small amount credit providers) will be subject to a minimum levy of $2,000, with a graduated charge for every $10,000 of credit providers for amounts over $100 million.

Small amount credit providers will not be subject to a minimum levy.

Credit intermediaries will be subject to a minimum levy of $1,000 and a graduated levy will be charged depending on the number of authorised representatives the intermediary has at 30 June.

Those in the financial advice sector will be subject to a fixed levy of $1,500, with a graduated levy calculated on the number of advisers on the Financial Adviser Register. However, for securities dealers, large securities exchange participants and large futures exchange participants the graduated component will exclude advisers who only provide advice on quoted products, products traded on a foreign financial market or basic banking products

Notably, the report also states that insurance product issuers now includes AFS licensees who make offers to arrange for the issue of insurance products under an intermediary authorisation with an APRA-regulated insurer that does not hold an AFS licence.

PROMOTED CONTENT


These product distributors will be subject to a flat levy.

For insurance product providers, there will be a minimum levy of $20,000 with a graduated levy after $5 million.

ASIC will release the estimated costs for each subsector's leviable activities for the 2017/18 financial year in the Cost Recovery Implementation Statement in October 2017.

ASIC chairman Greg Medcraft commented today: “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 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.”

[Related: ASIC industry funding model passes Senate]

First ASIC invoices to be issued in January
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.