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Thursday, 28 June 2018
Page: 4319

Senator O'NEILL (New South Wales) (12:49): I indicate that Labor will support the Corporations (Fees) Amendment (ASIC Fees) Bill 2018 and the related bills. These bills represent the second stage of the ASIC industry funding model. On 1 July 2017 the first stage of the ASIC industry funding model commenced with the introduction of industry levies to recover the costs of ASIC's regulatory activities. ASIC apportions this cost between industry sectors and subsectors according to the amount of regulatory activity they generate.

The second stage that is now before the parliament deals with fees for services. It's based on the principle that ASIC's costs for specific regulatory activities requested by an entity should be recovered from that entity to the extent that the fee directly represents the efficient costs of providing the regulatory activity or service. Under the scheme in these bills, these fees will be paid by entities for ASIC's demand driven services. Services intended to be captured by these new arrangements include document compliance reviews, licence applications and variations by Australian financial services licensees, Australian credit licensees and applications for registration by managed investment schemes.

In the other place, the Minister for Revenue and Financial Services assured the House that the government has consulted extensively with industry on the design of the ASIC industry funding model. We hope that the government has done its homework and manages the implementation of these changes appropriately. We note this government's poor record when it comes to corporate and financial services regulation.

In conclusion, Labor will support these bills regarding the fees for service elements of the ASIC industry funding model. However, we do so noting our concerns about the record of the government in regard to this sector, particularly when it comes to ensuring strong consumer protections in the banking and financial services sector.