Treasury has released a discussion paper for feedback as part of its review of the Australian Securities and Investments Commission (ASIC) industry funding model.

The paper poses a total of 31 questions including several addressing concerns that have been raised in the past by brokers and the wider industry.

These include questions in relation to costs associated with enforcement activity, specifically how they can be recovered “most equitably” and what changes could be made to the current approach.

The paper is also seeking views on how costs associated with education and policy advice can be recovered “most equitably and transparently” and changes that could be made to improve the current approach.

Other questions of particular industry significance relate to formulas used for determining individual sector levies, the Cost Recovery Implementation Scheme (CRIS), ASIC’s cost allocation methodology and transparency.

“The purpose of the review is to identify any refinements to the [industry funding model] that may be required to ensure its settings remain appropriate in the longer-term,” the discussion paper says.

“Governments’ long-standing position is that cost recovery fees and levies attributable to regulated activity are considered as a funding mechanism prior to budget funding.”

The paper says any “significant deviations” would raise concerns about equity and fairness, and would not be aligned with the Government’s priority for responsible budget repair.

“The Government is committed to maintaining appropriate industry funding arrangements for ASIC,” the paper says.

Treasury started the review last month, a first such examination of the industry funding model since it commenced in 2017 to support ASIC’s supervision of the financial services sector.

National Insurance Brokers Association CEO Philip Kewin has previously said the review is an opportunity to “look at an equitable funding model that enables those entities doing the right thing to provide professional advice and services affordably to their clients”.

“While insurance brokers were never an issue in the [Hayne] royal commission, it's fair to say all of financial services were caught up in the post-royal commission washup,” Mr Kewin said.

“As the dust has well and truly settled on the post-royal commission environment, we now have an opportunity to look at a funding model focusing on education and communication rather than investigation and remediation.”

NIBA last month said it will work with Treasury and ASIC to ensure members’ voices are heard during the review.

Closing date for submissions is October 28.

Click here for the discussion paper.