The corporate regulator has pushed advice firms to meet their obligations to its new industry funding model ahead of an impending deadline.
ASIC has reminded advice firms under its regulation to provide accurate business activity metrics through its regulatory portal by 27 September after it sent a letter out in July.
It said failing to submit metrics by the deadline or submitting inaccurate metrics will involve penalties.
For example, a shortfall penalty will apply if a person makes a false or misleading statement (including through omission) that results in a smaller levy being paid than should be the case.
In such cases, the penalty will be equal to twice the amount of the shortfall between the amount paid and the levy that should be payable.
As for the late payment of levies to ASIC, the penalty will be calculated monthly as 20 per cent per annum of the outstanding amount and charged monthly.
ASIC commissioner Cathie Armour said that entities that have the letter from ASIC should act now and follow the simple steps outlined to complete the process.
“Entities that do not have their letter should refer to our website … to find out what they need to do by 27 September,” Ms Armour said.
“We appreciate that this is an entirely new funding model for all involved – and our focus is on ensuring people know what they need to do.”
After the September deadline passes, ASIC will publish its Cost Recovery Implementation Statement for 2018-19.
Then in January 2019, ASIC will issue its first levy notices to industry for 2017-18, with entities given until February to pay or "face interest penalties". From March 2019, the regulator will begin pursuing late payments.
The government passed the bill to shift ASIC funding to a ‘fees-for-service’ model in late June.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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