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Next steps for ASIC industry funding laws

14 August 2018

#Corporate & Commercial Law

Published by:

Samuel Lane

Next steps for ASIC industry funding laws

The end of the 2017 – 2018 financial year brings in the first application of the new industry funding model for the Australian Securities and Investments Commission (ASIC). 

Industry funding for ASIC originally came into effect on 1 July 2017 and, as the name suggests, ASIC now largely relies on the industry to fund its regulatory costs. The logic of this change is to ensure that those entities who create a need for ASIC are the same entities who are paying for its costs.

What are the changes to ASIC funding?

Our previous article describing the changes can be found here

In short, the new funding model divides ASIC regulated entities into 6 sectors and 48 subsectors. ASIC’s regulatory costs for each financial year are then appropriately allocated among these subsectors. Regulated entities will be imposed with either a ‘flat levy’ or a ‘graduated levy’ depending on their subsector. 

ASIC’s indicative levies for each subsector during the 2017 – 2018 financial year can be found here, however the actual regulatory costs are expected to be published in November.

What steps does my business now need to take?

All regulated entities will have received a letter from ASIC outlining the changes and the steps that the entity must take to comply with the new laws. Specifically, regulated entities must use the registration details outlined in the letter to log in to the ASIC Portal and a company director or secretary must then:

  • register for a user account
  • provide details of the entity’s industry funding contact details
  • submit the entity’s ‘business activity metrics’ for the 2017-2018 financial year.

This must be done before 27 September 2018. 

For a summary of the ‘business activity metrics’ that a regulated entity may be required to provide, please see ASIC’s checklist, which can be found here.

Once a regulated entity has registered on the ASIC Portal, the director or secretary can then appoint a ‘trusted representative’ for the company. This replaces the previous role of ‘registered agent’ and, consequently, any existing registered agents cannot act for the regulated entity until they have been appropriately appointed as a ‘trusted representative’ through the ASIC Portal.

Holding Redlich’s corporate and commercial professionals can assist businesses with this registration process, and are able to perform regulatory tasks as a trusted representative for your business.

Authors: Lyn Nicholson & Samuel Lane

Contacts:

Melbourne
Dan Pearce, Partner
T: +61 3 9321 9840
Edan.pearce@holdingredlich.com 

Sydney
Darren Pereira, Partner 
T: +61 2 8083 0487 
E: darren.pereira@holdingredlich.com

Brisbane
Trent Taylor, Partner
T: +61 7 3135 0668
Etrent.taylor@holdingredlich.com

Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. 

Published by:

Samuel Lane

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