The Australian Securities and Investments Commission (ASIC) has today released its draft Cost Recovery Implementation Statement (CRIS) for submissions.

In the proposed CRIS for the 2021/22 financial year, the corporate regulator says it expects to recoup $332.3 million of regulatory costs via recovery levies and statutory levies for the period.

A sector-by-sector breakdown in the CRIS sets the insurance industry’s total levy at $67.008 million, comprising of $55.225 million in cost recovery levies and $11.783 million in statutory levies.

ASIC says claims handling, the Financial Accountability Regime, general insurance pricing misconduct, small business insurance cover and mis-selling are among its focus areas.

It says this is the first financial year in which claims handling and settling services providers is a separate sub-sector and in which providers in this sector will be charged a levy.

The estimated cost of regulating this new sub-sector is about $804,069, the CRIS says.

The industry funding model was introduced in April 2016, in response to the recommendation of the Financial System Inquiry (FSI) that the Government recover the cost of ASIC’s regulatory activities directly from industry participants through fees and levies calibrated to reflect the cost of regulating the different industry sectors.

Closing date for submissions is June 28.

Click here for the CRIS and submission details.