Chapter 4: The proposed industry funding Under an industry funding model, the costs of ASIC’s regulatory activities (including the costs of capital expenditure) would be recovered from industry through: annual supervisory levies that reflect the portion of ASIC’s activities dedicated to each of its regulated sectors; and fees-for-service that reflect ASIC’s actual in providing specific on-demand services to individual entities. This chapter provides an overview of the Government’s proposed levy and fee arrangements and the activities intended to be funded by each arrangement. Proposed levy arrangements Under the Framework and the Guidelines, the costs of activities that cannot be attributed to a specific entity should be recovered through levies. Consequently, levies would be used to recover ASIC’s costs of: undertaking surveillance (which includes front-line supervision); enforcing the law; providing guidance; developing advice for the Government; engaging with stakeholders; and certain activities in relation to educating consumers and investors. Table 2 summarises the industry sectors and sub-sectors regulated by ASIC that the Government intends to levy. Definitions of each sector and sub-sector can be found in Attachment I. 2: ASIC’s Regulated Population Industry Sector Industry Sub-Sectors Companies Listed disclosing public companies Non-listed disclosing public companies Non-disclosing public companies Large proprietary companies Small proprietary companies Australian Credit Credit providers Licensees Credit intermediaries
Chapter 4: The proposed industry funding Under an industry funding model, the costs of ASIC’s regulatory activities (including the costs of capital expenditure) would be recovered from industry through: annual supervisory levies that reflect the portion of ASIC’s activities dedicated to each of its regulated sectors; and fees-for-service that reflect ASIC’s actual in providing specific on-demand services to individual entities. This chapter provides an overview of the Government’s proposed levy and fee arrangements and the activities intended to be funded by each arrangement. Proposed levy arrangements Under the Framework and the Guidelines, the costs of activities that cannot be attributed to a specific entity should be recovered through levies. Consequently, levies would be used to recover ASIC’s costs of: undertaking surveillance (which includes front-line supervision); enforcing the law; providing guidance; developing advice for the Government; engaging with stakeholders; and certain activities in relation to educating consumers and investors. Table 2 summarises the industry sectors and sub-sectors regulated by ASIC that the Government intends to levy. Definitions of each sector and sub-sector can be found in Attachment I. 2: ASIC’s Regulated Population Industry Sector Industry Sub-Sectors Companies Listed disclosing public companies Non-listed disclosing public companies Non-disclosing public companies Large proprietary companies Small proprietary companies Australian Credit Licensees Credit providers Credit intermediaries
C2015-047_ASIC_industry_funding_model_CP.docx