The government has announced the industry funding model for ASIC has passed into law today and will commence on 1 July 2017.
The ASIC Supervisory Cost Recovery Levy Bill 2017 was passed in the Senate today without amendments.
According to a statement from Minister for Revenue and Financial Services Kelly O’Dwyer, the bill intends to improve outcomes in the financial services sector.
This is by having those entities regulated by ASIC bear the regulator’s costs, rather than Australian taxpayers, the statement said.
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.
The bill was passed despite both the FPA and AFA expressing concerns over the funding model.
In its submission to Treasury, the FPA said it was worried the model would “create a large burden on small businesses". The FPA was also concerned with the lack of detail and transparency involved in the consultation process.
In April, the AFA called the funding model “unfair” to advisers, and likely to put financial advice out of reach for those who need it most.
The statement from Ms O’Dwyer said regulations that provide additional detail on the operation of the industry funding model will be made shortly, ahead of the commencement on 1 July 2017.
The model is in response to a recommendation made in the 2014 Murray Financial System Inquiry, as well as the 2013 Senate Inquiry into ASIC’s performance.
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