ASIC publishes Cost Recovery Implementation Statement 2020-21 for feedback

ASIC today published its draft Cost Recovery Implementation Statement (CRIS) for 2020-21. The CRIS outlines ASIC’s estimated regulatory costs for 2020-21 and how these will be recovered as industry levies under the industry funding model.

The indicative levies published in the CRIS are based on our planned regulatory work and associated costs for the 2020-21 financial year. Final industry levies will be based on ASIC’s actual regulatory costs and the business metrics submitted by entities in each subsector. Final levies will be published in December 2021 and invoiced in January 2022.

Feedback on the draft CRIS can be submitted until 13 August 2021.

Background

ASIC’s budget is set by the Government. ASIC is required to detail, in the form of a CRIS, how the cost of ASIC’s regulatory activities will be recovered from each subsector it regulates through industry funding levies and how transaction-based regulatory costs will be recovered via fees for service.

The CRIS includes:

  • an explanation of the cost recovery model, including the business process, outputs and how we allocate costs to calculate the levies and fees for service
  • a forecast of ASIC’s regulatory costs
  • estimates of the levies that each regulated subsector will pay. Indicative levies are a guide only. They are based on our planned regulatory work and estimated levies to recover regulatory costs at the beginning of the financial year
  • actual costs ASIC incurred in the previous year for each subsector and the variance between the actual costs and the estimated costs in last year’s CRIS. Where there is a material variance, the CRIS explains the drivers for the variance, and
  • an assessment of the risks associated with the industry funding model and how those risks have been managed.

Visit our website to find out more about industry funding.

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