ASIC told to justify user-pays fees
The Australian Securities and Investments Commission (ASIC) has been urged to justify the fees it intends charging under its new fee-for-service model by publishing detailed data about the make-up of fees.
The Association of Superannuation Funds of Australia (ASFA) has urged greater transparency around ASIC’s new fee regime, especially in circumstances where, in some cases, fees are significantly higher than the current fee regime.
In a submission filed with ASIC this week, ASFA said transparency and accountability were critical features of any industry funding model.
“With respect to the ASIC fees‐for‐service regime, a robust accountability and transparency framework is required in order to provide ASIC’s regulated population with confidence that fees appropriately reflect regulatory effort,” it said.
“The superannuation industry is currently facing increased scrutiny, including as a result of the Productivity Commission’s review of efficiency and competitiveness of the superannuation system, and the enhanced disclosure requirements in relation to fees and costs,” the submission said.
“ASFA therefore considers it appropriate that ASIC, and other regulators for the superannuation industry, should be subject to a high degree of scrutiny regarding the levies and fees imposed on the superannuation industry and their utilisation.”
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
