Treasury has released two consultation papers on its proposal to move ASIC to a 'user-pays' funding model, which is set to commence in the second half of 2017.
The papers follow an announcement made in April of this year that the government would boost the regulator’s funding and shift it to the new model in response to the ASIC Capability Review commissioned in 2015.
“This consultation process seeks stakeholder views on the proposed industry funding model to recover the regulatory costs of the ASIC though annual levies and fees-for-service,” the Treasury said.
The Treasury said the new funding model would increase ASIC’s accountability and “create a richer dataset to help ASIC prioritise resources”, though the government noted it was important the regulator remain independent.
Additionally, the Treasury said the costs to individual sectors would be based on ASIC’s actual reported regulatory effort for the previous year, “calculated after the business activity has occurred and ASIC has finalised its regulatory costs”, with individual entity levies based on actual reported business metrics.
“In line with the principles of the Cost Recovery Framework, only the efficient costs of ASIC’s regulatory activities would be recovered. The efficient costs represent the minimum necessary costs for ASIC to undertake these activities,” the Treasury said.
“ASIC would publish its actual costs of regulating each subsector in the previous year prior to calculating and issuing invoices for that period.”
The two papers include a proposals paper and a supplementary technical paper, and both are open for feedback until 16 December 2016.