Date posted: 24/07/2020

Submission on ASIC's industry funding model for 2019-20

ASIC’s Cost Recovery Implementation Statement outlines how ASIC will implement the industry funding model for the period

Chartered Accountants ANZ provided feedback to ASIC on their annual Cost Recovery Implementation Statement (CRIS) on 24 July 2020. The CRIS outlines how ASIC will implement the industry funding model (IFM) which particularly affects our members who are practising auditors, registered liquidators, superannuation advisers, and financial advisers.  

In our submission we highlight the importance for ASIC to consider the recovery of costs, through the CRIS mechanism, are carefully balanced against the reasonableness and appropriateness of levy’s on entities and professionals in the current economic environment (COVID-19 and the impacts on businesses, particularly small and medium sized entities and professional firms). 

We also raised concerns around the timing of the current CRIS with respect to the recoverability of levies for those industries that are required to pay based on each engagement or event such as registered liquidators. 

We also re-emphasise many issues raised in our submission to the 2018-19 CRIS that are still applicable to the current CRIS for 2019-20 which include figures set out in the CRIS fortify our belief that the model does not represent a true ‘user pays’ system, significant increases for listed entities and Australian financial advisers who operate under an AFSL as well as inconsistency of fee structures.