Government outlines penalties in ASIC funding model

In November 2016, the government released a proposals paper for a new ASIC funding model, which shows the advice sector will be levied $24 million to refund the regulator, or $960 per financial adviser.

According to the exposure draft, released this week, ASIC will have the power to deregister a company if it fails to pay the levy at least 12 months after the due date.

It will also be authorised to bring proceedings in the name of the Commonwealth for the recovery of a debt due, the draft states.

Those companies may then be hit with penalties for late payments or shortfalls. Levied entities must make a payment by the date specified in an ASIC notice, the draft states.

The exposure draft also states that ASIC will be required to publish its total regulatory costs after 31 October every year, which will at least in part be recovered through the proposed model.

ifa reported in January 2017 that the AFA and FPA called for the ASIC funding model to include discounts for good adviser behaviour as well as for those operating in regional areas.

This followed after an Interprac Financial Planning manager expressed concerns to ifa about the extra costs being imposed on the financial advice industry due to new legislation, saying it will lead to a mass exodus.