EXPLANATORY STATEMENT Issued by authority of the Minister for Revenue and Financial Services ASIC Supervisory Cost Recovery Levy Act 2017 Corporations (Fees) Act 2001 Corporations (Review Fees) Act 2003 ASIC Supervisory Cost Recovery Levy Amendment (Enhancements) Regulations 2018 The (the Levy Act) imposes a levy on ASIC Supervisory Cost Recovery Levy Act 2017 entities regulated by the Australian Securities and Investments Commission (ASIC) to recover its regulatory costs. Section 13 of the Levy Act provides that the GovernorGeneral may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The (the Fees Act) imposes fees for chargeable matters Corporations (Fees) Act 2001 under the Section 8 of the Act provides that the Corporations Act 2001. GovernorGeneral may make regulations for the purposes of sections 5, 5A, and 6 of the Fees Act. The (the Review Fees Act) provides for an Corporations (Review Fees) Act 2003 annual review fee with respect to the review date of a company or registered scheme. Section 8 of the Review Fees Act provides that the GovernorGeneral may make regulations for the purposes of the Review Fees Act and section 1351 of the Corporations Act 2001. The (the Levy Regulations) ASIC Supervisory Cost Recovery Levy Regulations 2017 apply either a basic or a graduated levy to entities in each industry subsector regulated by ASIC. The type of levy and the formula for calculating the amount of levy payable is different for each industry subsector. The Levy Regulations also establish the criteria for determining the subsector/s an entity forms part of, sets out the formulas and metrics to be used for calculating the amount of levy payable for entities in each industry subsector and prescribes certain amounts that should not be part of ASIC’s regulatory costs. The ASIC Supervisory Cost Recovery Levy Amendment (Enhancements) Regulations (the Regulations) amend the Levy Regulations to: 2018 allow ASIC to recover its enforcement, compliance and surveillance costs relating to individuals regulated by ASIC; establish new industry subsectors to reflect the recently introduced licensing schemes for crowd-sourced funding intermediaries and financial benchmark administrators; create new subsectors for new and established specialised market operators; replace the existing credit rating agencies subsector with separate subsectors for large and small credit rating agencies;
EXPLANATORY STATEMENT Issued by authority of the Minister for Revenue and Financial Services ASIC Supervisory Cost Recovery Levy Act 2017 Corporations (Fees) Act 2001 Corporations (Review Fees) Act 2003 ASIC Supervisory Cost Recovery Levy Amendment (Enhancements) Regulations 2018 The ASIC Supervisory Cost Recovery Levy Act 2017 (the Levy Act) imposes a levy on entities regulated by the Australian Securities and Investments Commission (ASIC) to recover its regulatory costs. Section 13 of the Levy Act provides that the GovernorGeneral may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The Corporations (Fees) Act 2001 (the Fees Act) imposes fees for chargeable matters under the Corporations Act 2001. Section 8 of the Act provides that the GovernorGeneral may make regulations for the purposes of sections 5, 5A, and 6 of the Fees Act. The Corporations (Review Fees) Act 2003 (the Review Fees Act) provides for an annual review fee with respect to the review date of a company or registered scheme. Section 8 of the Review Fees Act provides that the GovernorGeneral may make regulations for the purposes of the Review Fees Act and section 1351 of the Corporations Act 2001. The ASIC Supervisory Cost Recovery Levy Regulations 2017 (the Levy Regulations) apply either a basic or a graduated levy to entities in each industry subsector regulated by ASIC. The type of levy and the formula for calculating the amount of levy payable is different for each industry subsector. The Levy Regulations also establish the criteria for determining the subsector/s an entity forms part of, sets out the formulas and metrics to be used for calculating the amount of levy payable for entities in each industry subsector and prescribes certain amounts that should not be part of ASIC’s regulatory costs. The ASIC Supervisory Cost Recovery Levy Amendment (Enhancements) Regulations 2018 (the Regulations) amend the Levy Regulations to: allow ASIC to recover its enforcement, compliance and surveillance costs relating to individuals regulated by ASIC; establish new industry subsectors to reflect the recently introduced licensing schemes for crowd-sourced funding intermediaries and financial benchmark administrators; create new subsectors for new and established specialised market operators; replace the existing credit rating agencies subsector with separate subsectors for large and small credit rating agencies;
Explanatory-Statement.docx