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ASIC estimates industry funding levy at $24.7 million

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The Australian Securities and Investments Commission (ASIC) estimates about $24.702 million in total levy will be recovered from the general and life insurance industries to fund the cost of regulating the sectors in the last financial year.

Around $16.113 million will come from the cost recoveries levy and the other $8.589 million from statutory levies.

The draft statement forecasts overall funding levies of $359.6 million will be collected from the financial services industry to support ASIC’s 2020/21 regulatory costs.

ASIC released the estimates last week in its draft Cost Recovery Implementation Statement, seeking feedback on its estimated regulatory costs for the 2020/21 financial year and how these will be recovered as industry levies under the industry funding model.

The corporate regulator is seeking feedback on the estimates and expects to publish the final levies in December, with invoices to be issued in January.

ASIC has been consulting on its draft cost recovery statement annually since the government announced in 2016 the introduction of an industry funding model for the corporate regulator.

The regulator says its insurance focus areas in the 2020/21 financial year include claims handling, mis-selling, hardship assistance, small business insurance cover, Hayne royal commission reforms implementation and unfair contract terms review.

“We continue to consult with and develop information for industry on our expectations of fair and transparent behaviour,” ASIC says in the draft statement.

“We will review specific market sectors and products, and we will take regulatory and enforcement actions where necessary.”

Closing date for submissions is August 13.

Click here for the ASIC cost recovery statement.