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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
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.
Attachment G – Proposed Fee Schedule G1: Proposed FeesforService for Professional Registration Forms Form Code Form Description Fee charged in 2013-14 Proposed fee NONUM1 Change of control for AFS licence $0 $4,400 P-342 Application for consent to resign as auditor of a public company $37 $470 P-5100A Application for registration of a new managed investment scheme $2,225 $3,500 P-5107 Notification of a change of responsible entity of a registered scheme $37 $2,300 P-5108 Notification of appointment of temporary responsible entity $37 $2,300 P-5112 Application for consent from ASIC to remove compliance plan auditor $37 $470 P-5113 Application for consent from ASIC to resign as compliance plan auditor $37 $470 P-5114 Notification of request by responsible entity to change compliance plan auditor $72 $470 P-5132 Application for consent from ASIC for resignation of removal of scheme auditor $37 $470 P-903AA Application for registration as an individual auditor $166 $3,100 P-903AB Application for registration as an authorised company $299 $2,600 P-903AC Application for registration as an individual auditor — Paper $366 $3,100 P-903AD Application for registration as an authorised audit company — Paper $599 $2,600 P-903BA Application for registration as a liquidator $366 $8,800 P-972 Application for registration as official liquidator $366 $5,100 PF225 Pro Forma 225 Deed of mutual release $0 $3,400 PF63 Pro Forma 63 Deed of subordination $0 $3,400 Application for registration of a self-managed superannuation fund auditor $100 $1,700
P-M20A Notice of changes to operating rules section 822D - Domestic $150 $52,000 P-M20B Notice of changes to operating rules section 822D - Overseas $150 $2,100 P-M21 Notice of change to a matter dealt with in compensation rules $150 $52,000 P-M22 Australian clearing and settlement facility licence application $1,484 $210,000 Table G3: Proposed FeesforService for Document Compliance Review Forms Form Code Form Description Fee charged in 2013-14 Proposed fee N/A6 Document lodged as a condition of section 1084 – section 741 relief $0 $160 N/A7 Offer document - Mutual recognition scheme $0 $330 N/A8 Supplementary or replacement document - Mutual recognition scheme $0 $160 P-395 ASIC Class order 08/15 $0 $50 P-488 Application to change the review data of a company or registered scheme $37 $50 P-491 Change to managed investment scheme details $0 $50 P-5021 Commencement of scheme deregistration $0 $50 P-5030 Registration copy of explanatory statement $38 $160 Related party benefits proposed notice, explanatory statement and accompanying documents $37 $1,000 P-5101 Notification of a change to managed investment scheme's constitution $37 $20 G3: Proposed FeesforService for Document Compliance Review Forms (continued) Form Code Form Description Fee charged in 2013-14 Proposed fee P-5102 Notification of a change to managed investment scheme's compliance plan $37 $20 P-5106B Notification of a change to managed investment scheme's compliance plan $39 $20
P-5111 Compliance plan audit report of a registered scheme $37 $80 P-5115A Notice of relief pursuant to section 601JB(3) $37 $150 P-5126 Notification of retirement notice $0 $50 P-5128 Notice of ratification of modification to deed $0 $50 P-595 Draft explanatory statement regarding compromise or arrangement $763 $3,900 P-6011 Notice of takeover offer sent to target - Off market $0 $160 P-6021 Notice of compulsory acquisition following takeover bid $0 $820 P-6022 Notice of right of buy out to remaining holder of securities following a takeover bid $0 $160 P-6023 Notice of right of buy out to holders of convertible securities following takeover bid $0 $160 P-6026 Notice of objection regarding compulsory acquisition buy out $0 $820 P-6027 List of members objecting to compulsory acquisition / buy out $0 $160 P-6181A Bidder's statement and offer - Off market, Equities $2,225 $5,300 P-6181B Bidder's statement and - Off market, managed investment schemes $2,225 $5,600 P-6201 Notice bidder's statement sent to shareholders $0 $160 P-6261 Notice offer free of defeating condition - Off market $0 $160 P-6291A Target bidder's statement and documents sent to ASX - On market, equities $1,107 $5,300 Target bidder's statement and documents sent to ASX - On market, managed investment schemes $1,139 $5,600 Table G3: Proposed FeesforService for Document Compliance Review Forms (continued) Form Code Form Description Fee charged in 2013-14 Proposed fee
Table H1: Forms that will have fees removed (continued) Form Code Form Description Fee charged in 2013-14 Proposed fee P-FS31 Cease an AFS licensee authorised representative $37 $0 P-FS32 Vary the details of an AFS licensee authorised representative $37 $0 P-FS70A Australian financial services licensee profit and loss statement and balance - Body corporate $563 $0 P-FS70B Australian financial services licensee profit and loss statement and balance sheet - Natural person $231 $0 P-FS70C Australian financial services licensee profit and loss statement and balance sheet - Superfund trustee / Partnership $563 $0 P-FS70D Australian financial services licensee profit and loss statement and balance sheet - Body corporate entity $563 $0 P-FS72 Application for extension of time to lodge annual accounts $37 $0 P-FS88 PDS in-use notice $37 $0 P-FT10 Application for extension of time to provide copy of register of members $37 $0 P-M06 Report and financial statements under s892H(6) $366 $0 P-M13 Australian markets licensee annual report to ASIC under s792F(1) $366 $0 P-M29 Australian clearing and settlements licensee annual report to ASIC under s821E(1) $366 $0 P-338 Application for approval of unregistered auditor of proprietary company $37 $0 P-481A Registered management investment scheme annual statement $1,113 $0 P-5116 Notice of withdrawal offer regarding registered scheme $37 $0 P-5131 Application for appointment of scheme auditor by member of a registered scheme $37 $0 P-5138 Notification of commencement or completion of winding up of a registered scheme $37 $0 P-5140 Notification of proposed change of name of registered scheme $37 $0