The Commonwealth Treasury has released a discussion paper seeking comments on its proposed revenue model for recovery from industry of all of the costs of the Australian Securities and Investment Commission's regulatory activities. "Activities that are consistent with the Government's Charging Framework will be recovered from industry via a cost recovery levy. Other activities will be recovered from industry via a statutory industry levy," the discussion paper states."The proposed model has a graduated levy that incorporates a minimum levy rather than the previously proposed tiering approach for most industry sectors. This change spreads levy costs more equitably between small and larger entities."From 2017-18 onwards, the intention is that, "as practically possible, all of ASIC's regulatory costs be recovered via the industry funding model." The measure proposed for each subsector is "a readily available metric of business activity that most closely aligns to the expected level of regulatory oversight, including the level of anticipated consumer or investor exposure," according to the consultation paper.  It adds that, "the quantum of the graduated component of the levy is driven by ASIC's enforcement and surveillance activities for each subsector."That means ongoing ASIC funding would no longer be recovered through any of the current levy mechanisms.A few examples are: retail OTC derivatives issuers could pay an annual flat levy of A$61,400, aiming to raise an annual total of $4.0 million; levies on financial advice licensees would raise $22 million in total through an estimated $960 per adviser listed on the financial advisers register (plus minimum levy of $960 payable for entities with no advisers registered on the FAR); small amount credit providers to pay a flat levy, based on the amount lent (they would, for a start, be liable for the $2,000 minimum levy payable by all credit providers and, in addition, a graduated levy is proposed, based on the amount of credit provided under small amount credit contracts starting with a $9,000 flat levy in 2017-18; followed in 2018-19 by a graduated levy based on payment product provider revenue); investment banking revenue would attract a $1,000 proposed fixed levy, payable by all investment banks, plus a graduated levy based on investment banking activities above $100,000, relative to total investment banking industry revenue; and credit rating agencies would pay a flat annual levy, estimated at $34,000, to raise $0.2 million.Written submissions will be accepted during the formal consultation period, ending 16 December 2016. Email to: asicfunding@treasury.gov.auThe starting point for getting further details on the proposed charges is here:  LINK:  https://consult.treasury.gov.au/financial-system-division/asic-industry-funding