The government has opened for consultation on more changes to its proposed industry funding model for the Australian Securities and Investments Commission (ASIC) including higher fees for Australian credit licence (ACL) holders.
The consultation paper released on Wednesday (22 November) details a new fees-for-service model which would retrieve funds from those creating the need for added regulation. This would include individuals and firms applying for or modifying an ACL.
The Minister for Revenue and Financial Services, Kelly O’Dwyer said this was a key recommendation of the Murray Financial System Inquiry and would ensure that ASIC has the funds and resources it needs.
“The industry funding model is an important component of the government’s plan to improve consumer outcomes in the financial services sector,” O’Dwyer said.
Proposed changes to fees for those wishing to apply for an ACL are as follows:
- Individuals other than credit providers ($1,798)
- Individual credit providers ($3,468)
- Other body corporates other than credit providers ($2,065)
- Other body corporate credit providers ($4,624)
Previously, fees for ACL applications were as low as $523 for electronic application processes with charges calculated according to the type of organisation and certain financial figures including volumes of credit advanced and value of property rented to consumers in the year prior.
For those seeking to vary authorisations or conditions on their current ACL, the government has proposed the following fee structures:
- Individuals other than credit providers ($1,156)
- Individual credit providers ($2,183)
- Other body corporates other than credit providers ($1,284)
- Other body corporate credit providers ($2,826)
This currently costs $115 to change details of an ACL electronically and $140 by paper.
ASIC has welcomed these changes, saying that 10% of its regulatory activities will be covered through these fees-for-service. The remaining 90% will be recovered through industry funding arrangements.
“The current fees for these activities do not reflect their actual cost and the government is seeking input from industry on changes to address this,” said ASIC commissioner John Price.
Those interested in providing a submission around the proposed changes can do so
through the Treasury website. The closing date for submissions is 15 December.
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