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ASIC gives final warning on funding model obligations

ASIC gives final warning on funding model obligations

The corporate regulator has alerted accounting firms of the upcoming deadline later this week to meet their legal obligations to the new industry funding model.

  • AFlores
  • September 27, 2018
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ASIC commissioner Cathie Armour thanked the thousands of people who have already completed the process before the 27 September deadline.

“We are all settling into this new funding model and your attention and time toward completing the process is appreciated,” Ms Armour said.

“The deadline is a few days away and we are urging the rest of our industry stakeholders to act now and complete the process online.”

Affected firms need to submit activity metric data on the operation of their business from the previous financial year through ASIC’s online regulatory portal before the deadline.

The obligation is part of new industry funding arrangements that became law in 2017, requiring organisations regulated by ASIC to contribute toward the associated regulatory costs incurred in the previous year.

However, ASIC noted that most small firms will not need to visit the portal, instead they pay an additional $4 on top of their annual review fee.

The corporate regulator also sent out a number of reminders to affected firms in July and in August.

In addition, it sent a letter in July to affected firms on how to complete the process, but also warned firms that didn’t receive the letter to still fulfil their obligations.

In May, the Institute of Public Accountants chief executive Andrew Conway questioned ASIC’s proposed fee hike for SMSF auditors.

“Even though ASIC is making significant income for government, it is not even able to cover its own costs from the budget it receives from government,” Mr Conway said.

New SMSF auditors face a one-off $1,927 registration fee, down from the initially proposed $3,429 last year, but still a considerable jump from the current $107 fee.

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