The federal government has released the draft legislation on the second phase of ASIC’s fee-for-service funding model for public consultation.
The new fees-for-service model will see prices for “activities such as processing a licence application … revised to reflect ASIC's actual costs,” said a statement from Minister for Revenue and Financial Services Kelly O’Dwyer.
Treasury consulted the public about ASIC’s new industry funding model in November 2017 and since then developed draft legislation and explanatory materials that are now open to the public for consultation.
According to the exposure draft explanatory statement, ASIC’s fees for granting market licences and dealing with potential conflict will jump by 251 per cent.
“The hourly rate will increase from $70 to $175.95, to closely reflect the costs ASIC incurs,” the explanatory statement said.
Commenting on the release of the draft legislation for consultation, Ms O’Dwyer said an industry funding model was a “critical component” of reforms to strengthen ASIC.
“Industry funding ensures that the costs of regulation are borne by those that have created the need for it, rather than the Australian public,” Ms O’Dwyer said.
“These proposed amendments allow ASIC to better align its fees, by enabling ASIC to charge a cost reflective fee for the services it provides for a specific entity.”
The consultation period will end on 24 April for bills-related documents and 1 May for regulation-related documents.