The Australian Securities and Investments Commission (ASIC) announced that has welcomed the passage of legislation enabling a more secure and accountable funding of the model for regulation of the Australian corporate sector.
Effective from 1 July 2017, ASIC’s regulatory costs will be recovered from all industry sectors regulated by ASIC through annual levies.
ASIC Chairman Greg Medcraft
ASIC Chairman Greg Medcraft welcomed the legislation’s passage, and highlighted the fact it enjoyed widespread support across the political spectrum.
This is an important milestone not just for ASIC, but also for the companies and wider corporate sector that we regulate,’ he said.
Industry funding, in one form or another, applies to other areas of public oversight in Australia and in many comparable economies around the world. Not only will the different elements of the broad business sector more fairly share the load, but the taxpaying public will benefit through the more accountable use of the funds provided for the task.
Australia already has an admired system of corporate regulation supported by rule of law. These new funding arrangements will help ensure that remains the case.
The industry-funding model, initiated by the Federal Government in April 2016 and subject to extensive stakeholder consultation, was designed to provide greater stability and certainty in ASIC’s funding to ensure sufficient resources to carry out its regulatory mandate.
Under the new arrangements, those who create the need for and benefit from regulation will bear the costs, introducing an economic incentive to drive the desired regulatory outcomes for the financial system.