Government moves to increase ASIC registry fees

The Government yesterday introduced the final aspect of its Australian Securities and Investments Commission (ASIC) industry funding model to Parliament, which, if passed, would see registry fees increase to reflect their actual cost to the regulator.

Currently, fees associated with regulatory services were excluded from the fees-for-services imposed by ASIC and instead only would incur a nominal charge. The proposed legislation would end this historical differentiation.

"No longer will Australian taxpayers have to subsidise any difference between the fee an entity pays and the actual costs incurred by ASIC, ensuring ASIC's costs are borne by those that have created the need for it," Kelly O'Dwyer, Minister for Revenue and Financial Services, said.

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As the industry reeled from the aftermath of the Royal Commission’s second round of hearings, O’Dwyer was optimistic that the reforms would improve accountability and compliance, of both the regulator and those it regulated.

"The industry funding model promotes equity, encourages greater regulatory compliances, and enhances ASIC's transparency and accountability. These Bills will strengthen ASIC's capabilities to ensure it is an effective regulator,” she said.

“The framework will ensure ASIC is transparent and held accountable throughout its periodic review in setting fee amounts by involving a public consultation process utilising a cost recovery implementation service.”

ASIC would also include industry funding on its external committees’ and panels’ agendas for consideration, as an additional accountability mechanism.

If passed into law, the changes would take effect from 1 July, this year. The Government said that it would review the industry funding model accountability framework in three years.

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This whole process is the most stupid approach to public service ever. Kelly O'Dwyer should hang her head in shame as a Minister for a supposedly Conservative government.
"Let ASIC charge fees to recoup its costs".
So why would ASIC show any restraint in their expenditure under those conditions? And why wouldn't they look to cross subsidise their other pet expenses, especially in the light of the recent budgetary drop in ASICs allocation of public dollars.
Another Minister duped by oxygen thieves in the public service. They make the bankers look ethical.

It is unbelievable, I dont know where they think we will get the money from, lots of small practices like mine already operate on a pretty thin margin what with systems , PI insurance, dealership fees etc.....its going to get to the stage where we just go belly up. We cant charge the fees we need as money smart says dont pay more than $500 for a plan and refer them to the king of general advice here in australia. So ASIC strangle us at every corner, they tell our market what we should charge, then suggest they just buy a book and learn it all there as what you dont know you dont know , then bring out bias reports to justify decreasing our income and expect us to also foot their bill! They should be careful as maybe there wont be anyone to fund them after long, maybe just host plus for all the referrals they get from the money smart website!

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