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NIBA expects low ASIC funding charge

Brokers are likely to pay a “relatively small” levy towards funding the Australian Securities and Investments Commission (ASIC) compared with other parts of the industry, the National Insurance Brokers Association says.

“This reflects the relatively low level of ASIC regulatory activity around general insurance broking,” it says in advice to members.

Earlier indications from the Government showed a typical broking company could face an annual levy of between $6000 and $10,000, although there has been no recent update, the association says.

The final amount will depend on ASIC’s calculation of costs that are referred to the broking sector and the number of licences held.

Under the new funding arrangements, all holders of financial services licences in areas regulated by ASIC will contribute to cost recovery, with levies to be paid retrospectively.

Brokers are likely to receive their first notice in February 2019 for the current financial year.

Factors taken into account when setting the levy include the size of the business, whether it is listed, whether it provides general or personal advice and the area in which it operates.

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