Overview

The Corporations (Fees) Act 2001 was enacted to provide a framework for the imposition of fees for various matters under the Corporations Act 2001, including those related to ASIC. The ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Regulations 2017, made under the authority of the Act, complement the ASIC Supervisory Cost Recovery Levy Regulations 2017 by making necessary adjustments to the Corporations (Fees) Regulations 2001. These adjustments include reducing the cost of prescribed lodgements for registered liquidators to $5 and repealing redundant regulations related to the repealed ASIC Market Supervisory Cost Recovery regime. The policy objective is to ensure that fees are aligned with the new levy structure and that the government does not recover an amount greater than ASIC’s regulatory costs. The Regulations were deemed necessary and did not require public consultation as they are technical adjustments to support the new levy system.

Scope and Application

The ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Regulations 2017 amends the Corporations (Fees) Regulations 2001 to align with the new ASIC Supervisory Cost Recovery Levy Regulations 2017. Specifically, the amendments reduce the cost of prescribed lodgement for registered liquidators to $5 and repeal regulations that are no longer applicable following the repeal of ASIC’s Market Supervisory Cost Recovery regime. These changes are designed to ensure that the government does not recover more than ASIC’s regulatory costs and to avoid conflicts with other regulations coming into effect on 1 September 2017. The Regulations apply nationally in Australia and complement the Levy Regulations, which impose a levy on entities regulated by ASIC to recover regulatory costs. There were no public consultations on these regulations as they were deemed to be technical consequential changes necessary to support the Levy Regulations.

Key Provisions

The ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Regulations 2017 (the Regulations) primarily focus on making consequential amendments to the Corporations (Fees) Regulations 2001. Section 1 of the Regulations reduces the cost of prescribed lodgements for registered liquidators to $5. This adjustment is made to align with the new regulatory framework introduced by the ASIC Supervisory Cost Recovery Levy Regulations 2017 (the Levy Regulations), which impose a levy on entities regulated by the Australian Securities and Investments Commission (ASIC) to recover its regulatory costs. The fee reduction applies until the current information technology portal can be modified to accept lodgements without requiring a fee to be paid. Additionally, the Regulations repeal redundant regulations that pertain to sections in the Corporations (Fees) Act 2001 dealing with ASIC's Market Supervisory Cost Recovery regime, which was repealed under the ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Act 2017. These changes aim to ensure consistency and avoid conflicts with the new levy structure. The Regulations impose specific obligations on the entities they govern. Registered liquidators must comply with the reduced prescribed lodgement fee of $5 as specified in Section 2 of the Regulations. This fee adjustment is intended to support the new cost recovery mechanisms under the Levy Regulations. Furthermore, the Regulations mandate that the total amount of fees recovered through the prescribed lodgements from 1 July 2017 be deducted from ASIC's regulatory costs for regulating liquidators. This ensures that the government does not recover an amount greater than ASIC's actual regulatory costs. Additionally, the Regulations amend the Corporations (Fees) Amendment Regulations 2016 to prevent conflicting changes when they come into effect on 1 September 2017. Breaching the provisions of these Regulations may have legal consequences. Although the explanatory statement does not specify particular offences or penalties, non-compliance with the prescribed lodgement fee requirements or failure to adhere to the adjustments made by the Regulations could potentially lead to civil or administrative penalties. These penalties could include fines or other sanctions as prescribed by the relevant laws governing corporate fees and regulatory compliance. The precise nature and extent of penalties would depend on the specific circumstances of the breach and the applicable regulatory frameworks. It is important for regulated entities to understand and comply with these obligations to avoid any adverse consequences.