Advertisement
Powered by MOMENTUM MEDIA
lawyers weekly logo
Compliance

ASIC levies double for broking industry

8 minute read

Levies from the financial services regulator will be more than double what they were last year, according to new ASIC estimates.

Credit intermediaries are estimated to pay $6.051 million in regulatory costs to the Australian Securities & Investments Commission (ASIC) for the financial year 2025, a 109 per cent increase on last year’s figures.

ASIC issued its 2024-25 Cost Recovery Implementation Statement (CRIS) estimates on Thursday (3 July), which outlines how ASIC will recover regulatory costs from industry under the industry funding model.

The levies, which are based on ASIC’s planned regulatory work and associated costs for the last financial year, will be finalised in December 2025 and invoiced between January and March 2026.

 
 

However, the regulator has estimated that there will be a minimum levy of $1,000 for credit intermediaries for FY25, plus an additional $43 per credit representative.

In total, credit intermediaries are estimated to pay $6.051 million in regulatory costs.

While ASIC has not released a reason for the doubling in levies, the costs are largely based on the volume of regulatory activities for each industry subsector in 2024–25.

Some of ASIC's enforcement of credit intermediaries over the financial year include the court case surrounding alleged RAMS misconduct and its information-gathering exercise on broker files.

For the 2024–25 financial year, ASIC’s total estimated recoverable costs across all sectors are $349.3 million — a 6 per cent increase from the $328.1 million recovered in 2023–24.

For FY25, the increased costs for credit intermediaries, and the financial services industry as a whole, largely relate to ASIC's work in supporting key government priorities, including:

  • Implementation of the scams prevention framework

  • Mandatory climate-related financial disclosures

  • Beneficial ownership transparency reform

  • Enhancements to ASIC’s data capability and cyber security.

The levies also cover ASIC’s work in education, industry engagement, guidance, and policy advice, as well as indirect costs such as digital, data and technology, and corporate support.

Calls for ASIC funding to be overhauled

The release of ASIC’s cost recovery estimates comes amid ongoing calls for widespread reform at ASIC.

Last year, a scathing Senate economic references committee report put forward recommendations to change the financial services regulator, including easing the funding burden on small businesses.

Specifically, the report recommended taking “reasonable steps” to ensure levies charged on industry subsectors are reduced (commensurate with increased resourcing to the regulator through the proceeds of fines).

Instead, it advised that the government “reassess” ASIC’s funding arrangements so that a greater level of funding can be directly resourced with the proceeds of regulatory fines (including late fees, court fines, penalties, and infringement notices).

It also advised ensuring that regulatory authorities are accountable for the level of resources linked to cost-recovered activity and face obligations to rationalise surplus resourcing to reduce costs on the industry subsector participants.

When releasing the report, the chairperson of the committee, Senator Andrew Bragg said: “The Committee understands the pressure of ASIC levies on small business. We have recommended lightening the load on small business by recalibrating the funding model.

“We need regulators to be responsive and transparent, but most of all to be focused on enforcement.

“These measures, if adopted, would provide Australians with the protection and confidence which is sadly absent.”

[Related: ASIC exercise ‘always anticipated’, say broker associations]

asic logo ta oum p

Annie Kane

AUTHOR

Annie Kane is the managing editor of Momentum's mortgage broking title, The Adviser.

As well as leading the editorial strategy, Annie writes news and features about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape.

She is also the host of the Elite Broker, New Broker, Mortgage & Finance Leader, Women in Finance and In Focus podcasts and The Adviser Live webcasts. 

Annie regularly emcees industry events and awards, such as the Better Business Summit, the Women in Finance Summit as well as other industry events.

Prior to joining The Adviser in 2016, Annie wrote for The Guardian Australia and had a speciality in sustainability.

She has also had her work published in several leading consumer titles, including Elle (Australia) magazine, BBC Music, BBC History and Homes & Antiques magazines.  

JOIN THE DISCUSSION

You need to be a member to post comments. Become a member for free today!
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more
You have 0 free articles left this month.
Register for a free account to access unlimited free content, or become a PREMIUM MEMBER to enjoy a wide range of benefits