Banks set to fund regulator

Assistant Treasurer Josh Frydenberg released a consultation paper on Friday morning, indicating that it forms part of the government’s consideration of the recommendation made by the FSI that called for ASIC’s regulatory activities be funded by industry.

“The Murray Inquiry observed that an industry funding model would provide more funding certainty for ASIC and enhance the transparency of ASIC’s costs and operations,” Mr Frydenberg said.

“An industry funding model for ASIC would: ensure that the costs of the regulatory activities undertaken by ASIC are borne by those creating the need for regulation (rather than all taxpayers); establish price signals to drive economic efficiencies in the way resources are allocated in ASIC; and increase ASIC’s accountability to its stakeholders.

“The government is committed to broad consultation with the community on the potential introduction of industry funding for ASIC, before making any decision.

“I encourage all stakeholders who have an interest in the efficient operation of ASIC to participate in this consultation process," he said.

The closing date for submissions is 9 October 2015.