Treasury has released its proposed levies for ASIC and APRA for the 2016-17 financial year, with the levy for the corporate regulator set to increase by 150 per cent to $70 million.
In a consultation paper titled Proposed Financial Institutions Supervisory Levies for 2016-17, Treasury revealed the prudential regulator APRA will require $131.3 million for the next financial year – with $122.1 million to be raised via a levy on the industry.
As for ASIC, $70.4 million will be required to partially offset ASIC's regulatory costs (up 150 per cent on last year's $28.2 million).
The increase stems from the government's announcement in April 2016 that it will bolster ASIC with a $127.2 million funding increase.
About $22.2 million of the ASIC levy will be paid for by authorised deposit-taking institutions, including both small and large banks, under the proposals.
The superannuation industry will put forward $24.5 million for ASIC while life insurers and general insurers would pay $10.5 million and $13.2 million, respectively.
"From 2017-18 onwards, ASIC's regulatory costs will be recovered from all industry sectors regulated by ASIC," the paper states.
"The government will consult extensively with industry to refine and settle an industry funding model for ASIC."
Federal Treasurer Scott Morrison announced last month that the government will equip ASIC with stronger powers and funding to combat misconduct in the financial services industry.
ASIC said the $127.2 million reform package will allow for "major shadow shop" operations and other projects in the financial advice and life insurance sectors.
The ifa Excellence Awards are back in 2021 and nominations are now open! This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021!
Administrators have commenced closing down subsidiaries within a group of companies involved in a $200 million alleged fraud against Westpac...