The Australian ­Securities & Investments Commission said the funding model will see sectors and entities charged directly for regulation through a system of industry levies and fees.

“An industry funding model is about ensuring that those industries that need the most regulation should pay for it, rather than taxpayers,” said ASIC's chairman, Greg Medcraft, in a statement. “It is about establishing a price signal for regulation which we think will drive economic efficiencies in the way resources are allocated in ASIC.”

“And an industry funding model will also improve ASIC's transparency and accountability. That means businesses will better understand the job we do by having greater visibility of the cost of doing that job,” he continued.

The watchdog added that the cost of using its resources has grown significantly out of line with the revenue collected from sectors regulated. Only 15 per cent of ASIC’s regulatory costs are recovered through industry levies and fees.