Treasury should consider an “appropriate” transition period for implementation of the fee-for-service funding model that takes effect on July 1, the Insurance Council of Australia (ICA) says in a submission.

It says the transition would help regulated entities, because many of the proposed fees under the new model will significantly increase costs.

The new model means Australian Securities and Investments Commission (ASIC) costs for specific regulatory activities requested by an entity will be recovered from that entity.

ICA says the proposed three-year timeframe for reviewing fees is reasonable but an “out of cycle” review should also be conducted if it is found, through ASIC’s assessment process, that fees are materially different from average costs.

Current fees in the Corporations (Fees) Act 2001 and regulations continue to apply from last July’s commencement of the industry funding model until the new fees-for-service schedule for industry funding is introduced.