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15-236MR ASIC welcomes consultation on industry funding
ASIC welcomes the release today of the Government’s consultation paper on a proposed industry funding model for the organisation.
A model that provides more transparency and certainty around ASIC’s funding is something recommended by the Financial System Inquiry and the Senate Economics References Committee Inquiry into the Performance of ASIC.
The proposed industry funding model will be based on the Government’s Cost Recovery Guidelines where the cost of ASIC's regulation will be recovered directly from sectors and entities that create the need for regulation. This will be via a system of industry levies and fees.
‘An industry funding model is about ensuring that those industries that need the most regulation should pay for it, rather than taxpayers,’ said ASIC chairman Greg Medcraft.
‘It is about establishing a price signal for regulation which we think will drive economic efficiencies in the way resources are allocated in ASIC.
‘And an industry funding model will also improve ASIC's transparency and accountability. That means business will better understand the job we do by having greater visibility of the cost of doing that job.’
Currently only 15 per cent of ASIC’s regulatory costs are recovered through industry levies and fees. The cost of using ASIC’s resources has grown significantly out of line with the revenue collected from sectors regulated.
Further, ASIC’s regulated population has also increased in size and complexity yet funding has not increased accordingly.
ASIC recognises the Government is committed to broad consultation with the community on the potential introduction of an ASIC industry funding model, before making any decision.
ASIC encourages all industry and other stakeholders to take part in the consultation. Responses to the consultation paper can be sent to email@example.com
The closing date for submissions is 9 October 2015.