Bills to create an industry funding model for ASIC have been introduced to the Parliament.
“This is the next step in implementing the Government’s commitment to recover ASIC’s regulatory costs from the entities that create the need for regulation, rather than the Australian taxpayers, who too often bear the costs of financial sector misconduct,” said Minister for Revenue and Financial Services Kelly O’Dwyer.
“Industry funding for ASIC will increase transparency, making industry more accountable for its behaviour and making ASIC a stronger regulator. It is a critical component of the Turnbull Government’s plan to improve consumer outcomes in the financial services sector.”
“The Government appreciates industry’s continued engagement throughout the development of the industry funding model. The Government expects to release draft regulations providing greater detail on the operation of the model for consultation in the coming weeks.”
If legislated, the industry funding model is set to commence from 1 July 2017.
The Explanatory Memorandum to the Bill says an industry funding model will increase ASIC’s accountability.
“ASIC will annually explain its regulatory priorities, the means by which it intends to address those priorities and the allocation of resources to each regulatory activity. The Government expects that ASIC will develop a communications strategy consistent with the recommendations of the Capability Review that clearly explains to industry and consumers its choice of regulatory tools or pursuit of particular objectives in making regulatory decisions.”
Under the changes ASIC will also be required to “create richer datasets”.
“ASIC will be required to improve its collection and use of data generated by financial entities which will assist with regulation, compliance and prioritisation by developing technological systems that are both agile and adaptable.”
The Bills are the:
- ASIC Supervisory Cost Recovery Levy Bill 2017
- ASIC Supervisory Cost Recovery Levy (Collection) Bill 2017
- ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Bill 2017
The Bills were introduced, a second reading moved and then debate adjourned. The House of Representatives next sits on 9 May – for the Budget.