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30.11.2021

News

2020-21 industry funding levies finalised

ASIC has confirmed industry funding levies for 2020-21 with the release of its finalised Cost Recovery Implementation Statement (CRIS).

Now in its fourth year of operation, the ASIC industry funding model enables ASIC to recoup its regulatory costs, such as surveillance, enforcement, industry engagement, and policy advice. The CRIS sets out ASIC's budgeted regulatory costs for the financial year and the indicative levies ASIC proposes to impose to recover these costs from industry.

The finalised levy figures largely reflect those outlined in the draft CRIS issued in July 2021. The key difference relevant to our clients is the reduction to licensees who provide personal advice to retail clients on relevant financial products (ie financial products other than basic banking products, general insurance products, consumer credit insurance, or a combination of any of those products). Following stakeholder submissions, ASIC reduced the actual levy to nearly a third of the proposed variable adviser rate.

2019-20 actual levies 2020-21 draft levies 2020-21 actual levies
Investment management sector
Responsible entities $7,000 plus $16.09 per $1 million of assets above the $10 million threshold $7,000 plus $20.08 per $1 million of assets above the $10 million threshold $7,000 plus $20.08 per $1 million of assets above the $10 million threshold
Wholesale trustees $1,000 plus $1.51 per $1 million of adjusted total assets $1,000 plus $2.82 per $1 million of adjusted total assets $1,000 plus $2.82 per $1 million of adjusted total assets
Custodians $496 $699 $699
Financial advice sector
Licensees that provide personal advice to retail clients on relevant financial products $1,500 plus $2,426 per adviser $1,500 plus $3,138 per adviser $1,500 plus $1,142 per adviser
Licensees that provide personal advice to retail clients on products that are not relevant financial products $2,064 $2,817 $2,817
Licensees that provide general advice only $2,081 $2,959 $2,959
Licensees that provide personal advice to wholesale clients only $29 $27 $27

Expected levy

For example, a 'typical' wholesale property fund manager could expect to be invoiced the following amount:

  • Wholesale trustees: $1,000 plus $2.82 per $1 million of total assets in all unregistered schemes (with some adjustments).
  • General advice (retail or wholesale): $2,959.
  • Custodian (including as an incidental provider): $699.

Total: $4,658 plus $2.82 per $1 million of total assets in all unregistered schemes (with some adjustments).

Without factoring in the variable assets under management component, this represents at least $700 in increased levies for a wholesale property fund manager when compared to the 2019-20 rates.

Please note, the amount of the levy invoice will depend on the ‘subsectors’ an AFS licensee falls within, which depends on a range of factors.

ASIC is expected to issue regulatory levy invoices in January 2022. Payment of levy invoices is due in March. We encourage you to contact us if you have any queries or concerns about your levy invoice.


Authors

Elliott Stumm

Elliott Stumm

Partner

Contact McMahon Clarke

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