ASIC Industry Funding Model: Consultation Questions and Answers Question Answer General Questions Q: If a regulated entity becomes insolvent and is A: No. ASIC will engage in its debt collection processes to recover the unable to pay annual levy, will that levy amount of debt from that entity, as per current arrangements. amount be shared across remaining entities in Once the rates of levy for a subsector are set for a year, they will not be that subsector for that year? adjusted. Q: Will be late payment penalties and A: Yes. If any levy payable by a person is unpaid, a simple interest rate of sanctions? 20% per annum is intended to be applied to any unpaid amounts. If amounts of levy are unpaid after twelve months, further administrative sanctions may be taken. Q: Will an entity that satisfies multiple definitions Yes. The levies are per regulated activity undertaken by entities. have to pay more than one rate of levy? For example, if an entity is authorised as a deposit product provider and a payment product provider, the entity will pay both levies to recover ASIC's costs to regulate both deposit and payment product providers. Q. Will ASIC advise each entity what subsectors No. As is the case for current regulatory obligations, each regulated entity will they meet the definition for under the industry be responsible for determining what subsectors they belong to under the funding model? proposed industry funding model. Currently entities are required to meet all regulatory obligations, including data reporting obligations, associated with that subsector.
ASIC Industry Funding Model: Consultation Questions and Answers Question Answer General Questions Q: If a regulated entity becomes insolvent and is unable to pay annual levy, will that levy amount be shared across remaining entities in that subsector for that year? A: No. ASIC will engage in its debt collection processes to recover the amount of debt from that entity, as per current arrangements. Once the rates of levy for a subsector are set for a year, they will not be adjusted. Q: Will be late payment penalties and sanctions? A: Yes. If any levy payable by a person is unpaid, a simple interest rate of 20% per annum is intended to be applied to any unpaid amounts. If amounts of levy are unpaid after twelve months, further administrative sanctions may be taken. Q: Will an entity that satisfies multiple definitions have to pay more than one rate of levy? Yes. The levies are per regulated activity undertaken by entities. For example, if an entity is authorised as a deposit product provider and a payment product provider, the entity will pay both levies to recover ASIC's costs to regulate both deposit and payment product providers. Q. Will ASIC advise each entity what subsectors they meet the definition for under the industry funding model? No. As is the case for current regulatory obligations, each regulated entity will be responsible for determining what subsectors they belong to under the proposed industry funding model. Currently entities are required to meet all regulatory obligations, including data reporting obligations, associated with that subsector.
ASIC_IFM_QandAs.docx