Govt releases terms of reference for ASIC levy review

Mike Taylor

Managing Editor and Publisher

29 September 2022

The Federal Government has revealed the terms of reference for the review of the industry funding model underpinning the Australian Securities and Investments Commission which will include the temporary levy relief provided to financial advisers.

The terms of reference were released by the Assistant Treasurer and Minister for Financial Services, Stephen Jones who reinforced that notwithstanding the review of the industry funding model, the Government remained committed to “maintaining appropriate industry funding arrangements for ASIC”.

Importantly, however, the terms of reference point to the review addressing the circumstance in which the financial advice sector was levied to cover the costs of ASIC’s action against Westpac over superannuation-related advice.

It also has scope to look at the impact of industry changes, such as the exit of the banks.

It specified that the review would look at how ASIC allocates costs to sub-sectors with a focus on regulatory activity that impacts multiple sub-sectors, the consequences of time lags between regulatory action and cost allocation, and the changes to sub-sector composition, including firm exits.

“Whether key aspects of the design and legislative framework for the IFM remain appropriate, including in light of structural changes in parts of industry. This will include considering whether changes are required to any sub-sector definitions and/or levy metrics, and whether any opportunities exist for simplification,” the terms of reference said.