ASIC outlines latest expected levies and regulatory costs
ASIC outlines latest expected levies and regulatory costs | Insurance Business Australia
Insurance News
ASIC outlines latest expected levies and regulatory costs
Insurance brokers highlight importance of well-funded regulator
Insurance News
By
Roxanne Libatique
The Australian Securities and Investments Commission (ASIC) has issued its Cost Recovery Implementation Statement (CRIS) for the 2023-24 fiscal year.
The CRIS outlines projected regulatory costs and levies for various industry subsectors, assisting entities in financial planning for the upcoming charges.
Released annually, the CRIS sheds light on ASIC’s use of the industry funding model, which was introduced by the Australian government in 2017. The figures in the statement are preliminary estimates, with the final levies set to be published in December 2024 and invoiced between January and March 2025.
Why does ASIC publish CRIS annually?
Regulated entities receive annual invoices for ASIC’s regulatory services, as mandated by laws stemming from the Financial System Inquiry’s recommendations. The levies reflect the corporate watchdog’s expenses in regulating different subsectors.
Each year, ASIC details the cost recovery process from regulated subsectors through industry funding levies and fees for service. This funding model ensures that the cost of regulatory activities is borne by the entities regulated by ASIC, rather than by taxpayers.
ASIC’s Cost Recovery Implementation Statement for 2023-24
The CRIS provides a comprehensive overview of how ASIC implements the industry funding model and recovers:
the costs of regulatory activities for each industry subsector in 2023-24
user-initiated and transaction-based regulatory costs through fees for service in 2023-24
The CRIS includes estimated costs and levies, allowing entities to plan and budget for upcoming charges. The figures are indicative, with final levy notices to be issued between January and March 2025 after actual levies are determined.
To address recommendations from the 2023 review of ASIC’s Industry Funding Model, ASIC and Treasury will establish a five-yearly consultation process with the industry to review policy settings within the funding model. This will replace the annual consultations that were previously conducted before the final CRIS release.
NIBA’s insights on CRIS for 2023-24
The National Insurance Brokers Association (NIBA) has welcomed the release of ASIC’s cost recovery implementation statement.
“As the voice of the general insurance broking profession, NIBA looks forward to continuing to engage with ASIC to promote responsible risk management and an efficient and effective insurance market,” it said.
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