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ICA attacks industry funding consultation

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The Insurance Council of Australia (ICA) has criticised the “poor process” used in a consultation on proposed financial institution supervisory levies for next financial year.

It says it is difficult to achieve meaningful discussion when key details, beyond internal estimates of resource utilisation for each industry sector, are unavailable.

The absence of the Cost Recovery Implementation Statement (CRIS), which the Australian Prudential Regulation Authority will release after the consultation, is an area of concern.

“It is poor process that the sector is being asked to respond to this consultation in the absence of the CRIS from APRA,” ICA says in a submission. “It is critical that an adequately transparent framework be in place to ensure regulators deliver value for money.

“The general insurance sector’s contribution to the levies is significant. It is therefore important that the sector knows how its contribution will be allocated and used.”