Polymath Investors Proprietary Limited and Australian Securities and Investments Commission

This matter concerned an application by Polymath Investors Proprietary Limited for a waiver of components of the ASIC Industry Funding Levy. The dispute arose from ASIC's refusal to grant this waiver. The decision was made by Mr P W Taylor SC, Senior Member.

The court was required to determine whether exceptional circumstances justified a waiver of the ASIC Industry Funding Levy components for Polymath. This involved considering the legislative scheme for ASIC's supervisory cost recovery, which mandates annual contributions from "leviable entities" to cover ASIC's regulatory costs, with contributions generally corresponding to the industry sub-sectors to which entities belong.

The Senior Member reasoned that Polymath had failed to establish that it lacked the financial means to pay the levy. The levy was considered modest in the context of the overall scheme. The court applied the principle that entities wishing to hold an Australian Financial Services Licence and engage in management activities should be expected to manage their affairs competently, carefully, and prudently, including ensuring they have the means to meet their financial obligations. Therefore, Polymath's current financial position was not considered a significant factor in demonstrating an inability to meet the levy liability.

The decision under review was affirmed, meaning Polymath's application for a waiver of the ASIC Industry Funding Levy was unsuccessful.