To minimise the regulatory burden on industry, proxies for supervisory intensity have generally been limited to metrics that ASIC already collects data on. The question of the most appropriate proxies for supervisory intensity will feature in all methodology reviews of the funding model. Step 4: Finalise levy calculation mechanism The Government will consult with industry on the proposed levy calculation mechanisms. The Government will consider the feedback from consultation in its determination of ASIC’s total funding and final levy calculation mechanisms. These will be communicated to industry through the budget process and the making of legislative instruments. Attachment A to Attachment F detail the levies to apply to each of ASIC’s regulated sectors. Levies for 2017-18 and beyond would be calculated in line with the methodology detailed above. Where an entity provides multiple regulated services (that is, falls within more than one regulated industry sector), that entity would pay the levy that applies to each category of service it provides. There is no discount for entities that operate across a range of sectors or subsectors because ASIC’s supervisory teams focus on the specific activities of regulated entities, rather than the entity in its entirety. Therefore, there are no efficiencies of scope for ASIC in regulating more complex entities. ASIC’s Strategic Outlook As part of the Commonwealth Performance Framework requirements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), ASIC must produce an annual corporate plan (its Strategic Outlook). The Strategic Outlook must be published by 31 August each year, with reference to ASIC’s budget. The Strategic Outlook will set out ASIC’s objectives and priorities (and strategies to achieve them) over the forward estimates period. It will set out key strategic risks and opportunities facing the sectors regulated by ASIC and the regulatory activities that ASIC will undertake in response. The Strategic Outlook must also include information on how ASIC’s performance will be measured. How ASIC assesses risk ASIC’s assessment of the risks that each regulated sector presents, as well as the ways in which ASIC can assist the operation of regulated entities, is central to the activities that ASIC plans to undertake. ASIC determines risk through a down’ and a up’ process. The down’ process: ‘top ‘bottom ‘top identifies underlying risk factors, such as information asymmetries, market structures and business conduct; and considers broader developments in the environment such as economic and market trends, demographic shifts, investor and consumer behaviour and technological developments.
To minimise the regulatory burden on industry, proxies for supervisory intensity have generally been limited to metrics that ASIC already collects data on. The question of the most appropriate proxies for supervisory intensity will feature in all methodology reviews of the funding model. Step 4: Finalise levy calculation mechanism The Government will consult with industry on the proposed levy calculation mechanisms. The Government will consider the feedback from consultation in its determination of ASIC’s total funding and final levy calculation mechanisms. These will be communicated to industry through the budget process and the making of legislative instruments. Attachment A to Attachment F detail the levies to apply to each of ASIC’s regulated sectors. Levies for 2017-18 and beyond would be calculated in line with the methodology detailed above. Where an entity provides multiple regulated services (that is, falls within more than one regulated industry sector), that entity would pay the levy that applies to each category of service it provides. There is no discount for entities that operate across a range of sectors or subsectors because ASIC’s supervisory teams focus on the specific activities of regulated entities, rather than the entity in its entirety. Therefore, there are no efficiencies of scope for ASIC in regulating more complex entities. ASIC’s Strategic Outlook As part of the Commonwealth Performance Framework requirements under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), ASIC must produce an annual corporate plan (its Strategic Outlook). The Strategic Outlook must be published by 31 August each year, with reference to ASIC’s budget. The Strategic Outlook will set out ASIC’s objectives and priorities (and strategies to achieve them) over the forward estimates period. It will set out key strategic risks and opportunities facing the sectors regulated by ASIC and the regulatory activities that ASIC will undertake in response. The Strategic Outlook must also include information on how ASIC’s performance will be measured. How ASIC assesses risk ASIC’s assessment of the risks that each regulated sector presents, as well as the ways in which ASIC can assist the operation of regulated entities, is central to the activities that ASIC plans to undertake. ASIC determines risk through a ‘top down’ and a ‘bottom up’ process. The ‘top down’ process: identifies underlying risk factors, such as information asymmetries, market structures and business conduct; and considers broader developments in the environment such as economic and market trends, demographic shifts, investor and consumer behaviour and technological developments.
C2015-047_ASIC_industry_funding_model_CP.docx