The estimated levy recovered by The Australian Securities and Investment Commission (ASIC) totals $24.7 million. These funds will be recovered from the general and life insurance industries to cover the cost of regulating the sectors in the last financial year. $16.1 million is projected to come from the cost recoveries levy whilst the remaining $8.5 will be obtained from statutory levies.
It is projected that overall funding levies of $359.6 million will be collected from the financial services sector to support ASIC’s 2020/21 regulatory costs. ASIC released these estimates last week as part of their draft Cost Recovery Implementation Statement, seeking feedback on how these funds will be recovered as industry levies under the industry funding model.
The corporate regulator expects to publish the final levies in December and invoices to be issued in January. ASIC has created a draft cost recovery statement annually since the government introduced the industry funding model for the corporate regulator in 2016.
The insurance focus areas for the 2020/21 financial year include claim handling, mis-selling, hardship assistance, small business insurance cover, Hayne royal commission reforms and unfair contract terms review.
In the draft statement, which can be found here, the ASIC says “we continue to consult and develop information for industry on our expectations of fair and transparent behaviour. We will review specific market sectors and products, we will take regulatory action…where necessary”.
August 13th is the closing date for submissions.
ASIC Australian Securities & Investments Commission – https://asic.gov.au/
Insurance News – https://www.insurancenews.com.au/