Corporations (Fees) Amendment (ASIC Fees) Act 2018

Overview

The Corporations (Fees) Amendment (ASIC Fees) Act 2018 was enacted to amend the Corporations (Fees) Act 2001, focusing specifically on updating fees associated with the Australian Securities and Investments Commission (ASIC). This Act was passed by the Parliament of Australia and received Royal Assent on 28 June 2018, entering into force the following day. The primary objective of this amendment was to address the need for updating the fees charged by ASIC to reflect the complexity of the chargeable matters and to provide a more equitable fee structure based on the nature of the application or lodgment. The Act introduces differential fees for chargeable matters, taking into consideration the complexity of the matter and other relevant factors, while also adjusting the thresholds for fee applicability to better align with current economic conditions and regulatory needs.

Scope and Application

The Corporations (Fees) Amendment (ASIC Fees) Act 2018 amends the Corporations (Fees) Act 2001 to introduce changes regarding fees charged by the Australian Securities and Investments Commission (ASIC) for specific activities. The Act applies to entities and individuals subject to the Corporations Act 2001, particularly those required to lodge documents or apply for exemptions or declarations under various Acts including the Insurance Act 1973, the Life Insurance Act 1995, and the Superannuation Industry (Supervision) Act 1993. It establishes a national framework for the regulation of fees associated with these activities, ensuring consistency across jurisdictions. The Act specifies new fee structures and criteria for determining fee complexity, thereby allowing for differentiated fees based on the nature and complexity of the chargeable matter. The amendments also include modifications to existing thresholds and the introduction of new definitions, such as expanding the scope of "chargeable matters" to include certain activities under other Acts. The Act applies across Australia, as it amends a Commonwealth Act, thereby affecting entities and individuals nationwide. The Act does not specify exclusions or exemptions beyond those detailed in its provisions. Subordinate instruments may further detail the implementation and administration of these fees.

Key Provisions

The Corporations (Fees) Amendment (ASIC Fees) Act 2018 (C2018A00055) amends the Corporations (Fees) Act 2001. The primary changes introduced by this Act are detailed in Schedule 1, which focuses on ASIC fees. The Act commences on 29 June 2018, the day after receiving Royal Assent. The main operative sections of the Act include the substitution of "chargeable matters" for "things done under the Corporations Act 2001" in the title, and the addition of new definitions related to lodgments under the Insurance Act 1973 and Life Insurance Act 1995, and applications to ASIC under the Superannuation Industry (Supervision) Act 1993. The Act also introduces differential fees based on the complexity of the chargeable matter and other factors, such as the person liable for the fee. The fee thresholds for certain activities have been increased, with the maximum fee for lodgments now set at $200,000, and the maximum fee for certain types of applications to ASIC set at $300,000. The Corporations (Fees) Amendment (ASIC Fees) Act 2018 imposes several obligations and requirements on the parties or entities it governs. The Act mandates that ASIC may prescribe different fees for chargeable matters based on their complexity, whether low, medium, or high. Additionally, ASIC can establish criteria to determine the complexity of a chargeable matter through a legislative instrument. If no such determination is in operation, the fee for a chargeable matter defaults to that prescribed for low complexity. Furthermore, the Act specifies that the person liable for the fee is the one who lodges the document or makes the application, and the liability is incurred at the time of lodgment or application. The Act also requires that any regulations made under it must consider these factors when prescribing fees. The Corporations (Fees) Amendment (ASIC Fees) Act 2018 includes provisions for penalties and consequences in the event of non-compliance. While the Act itself does not explicitly state the penalties for breach, it is understood that breaches of fees-related provisions under the Corporations (Fees) Act 2001 could result in civil or criminal penalties. Under the Corporations Act 2001, penalties for non-compliance can include fines of up to $210,000 for individuals and $1,050,000 for corporations, depending on the nature and severity of the breach. These penalties underscore the importance of adhering to the fee structures and requirements set forth by the Act.