The National Insurance Brokers Association (NIBA) says draft legislation for industry funding of the Australian Securities and Investments Commission (ASIC) fails to allay fears over a planned levy.

“We remain concerned that a number of elements of the funding model remain unclear and, as a result, we are not yet able to give a clear indication to members about how the proposed levy will operate in practice,” CEO Dallas Booth says in a bulletin to members.

“We will continue to seek clarification of these matters and will report the outcome of our discussions as soon as we are in a position to do so.”

The Federal Government released draft legislation last week, after saying last April that it plans to introduce an industry funding package for ASIC.

The changes were expected to take effect in the second half of this year.

“The Government is continuing to consult on the mechanisms that will be used to calculate the levies payable by each class of regulated entity, with this detail to be included in subsequent draft regulations,” Treasury said last week.

Both NIBA and the Insurance Council of Australia have raised concerns that the industry will end up paying more than its fair share, potentially subsidising other, more troubled sectors.

Submissions on the draft legislation are due by March 10.