ASIC has welcomed the passing of the industry funding model bill, calling it the “dawn of a new regulatory era” and an important milestone for the industry.
Yesterday, the ASIC Supervisory Cost Recovery Levy Bill 2017 was passed in the Senate without amendments.
From 1 July 2017, ASIC’s regulatory costs will be recovered from all industry sectors regulated by ASIC through annual levies.
ASIC chairman Greg Medcraft said the legislation had “widespread support" across the political spectrum.
“This is an important milestone not just for ASIC, but also for the companies and wider corporate sector that we regulate,” he said.
“Industry funding, in one form or another, applies to other areas of public oversight in Australia and in many comparable economies around the world.
“Not only will the different elements of the broad business sector more fairly share the load, but the taxpaying public will benefit through the more accountable use of the funds provided for the task.”
In November 2016, the government released a proposals paper for the model, which showed 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 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 Minister for Revenue and Financial Services Kelly O’Dwyer said regulations that provide additional detail on the operation of the industry funding model will be made shortly, ahead of the 1 July 2017 start date.
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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