ASIC’s new funding model - how will you be affected?

IFRS news

1 July 2017 saw the introduction of a new Industry Funding Model at the Australian Securities and Investments Commission (ASIC), following the passage into law of the ASIC Supervisory Cost Recovery Levy Act 2017.  

The new model enacts a fundamental public policy shift, by seeking to move the cost of ASIC’s regulatory activities away from the Australian taxpayer, and directly on to those industries being regulated.  ASIC

In order to achieve this, ASIC will charge a levy onto all leviable entities, which are subject to its regulation.  There are multiple types of leviable entity, and the method of calculation of the levy varies by industry sector. The levy may be either a fixed amount, or graduated according to size. 

There are over 50 industry subsectors affected by the levy, including:

  • Companies registered under the Corporations Act 2001
  • Entities providing investment management and superannuation services
  • Entities providing financial services, credit services, or market infrastructure
  • Auditors and authorised audit companies
  • Registered Liquidators

What will you have to do under the new Industry Funding Model? How much will you have to pay?

To find out what this means for you, download the full article here.

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For further information about ASIC's new Industry Funding Model, please contact Ralph Martin, or your local RSM adviser.