The Institute of Public Accountants (IPA) has proposed a co-regulatory framework in relation to the responsibility and funding of the Australian Securities and Investments Commission (ASIC), where responsibility is shared among key industry participants.
In supporting the proposed industry finding model to assist ASIC, the IPA said the Government should consider establishing a formal co-regulatory model where some of ASIC's responsibilities would be divided between private participants.
IPA chief executive, Andrew Conway, said this model could help ASIC enhance its capability to achieve its responsibilities.
"For example a model may be developed with a horizontal co-regulatory framework for the regulation and monitoring of auditors, along with associated enforcement activities, equitably shared amongst key stakeholders including the state, the accounting and auditing professions and private industry," Conway said.
Conway proposed the Government could look at funding models used in other jurisdictions such as the UK, US, and New Zealand.
He also said further research was required on the levy method to ensure it was the most equitable way of allocating costs among various user groups.
"One alternative method may be to apply an activity based costing system which identifies the correct cost drivers applicable to the appropriate group being charged," Conway said.
"This would result in a fairer system that appropriately allocates fixed and variable costs which would be monitored by the proposed dashboard system."
Conway said the research could be conducted by the accounting profession represented by the three peak professional bodies.
"The IPA would seek input from the IPA Deakin SME Research Centre," Conway said.