Smaller licensees are likely to feel the pinch under ASIC’s new industry funding model after it announced that all licensees providing financial advice will be required to pay a $1500 levy alongside individual adviser levies.
In releasing the finalised version of its cost recovery framework, ASIC stated “…a fixed levy of $1,500 has been introduced for licensees authorised to provide advice on relevant products” and “…the graduated levy for these licensees is based on the number of advisers on the Financial Adviser Register (FAR)”.
ASIC has yet to release the current costs associated with regulating the financial advice sector but has stated in the past that costs will be around $22 million (see: ASIC Funding Arrangements Open for Industry Feedback) and updated costs for the 2017-18 year will be released in October 2017.
Based on this figure, and the 25,400 advisers on the FAR, costs per adviser would equal around $900 per year with advisers and licensees to receive their first invoices in January 2019 to recover costs for regulatory services for the 2017–18 financial year.
ASIC Chair Greg Medcraft said the regulator was pleased to be able to confirm the framework which was created under legislation that came into effect on 1 July 2017 (see: ASIC Funding Model Passes Parliament) after several rounds of consultation with the wider financial services sector.
The AFA has expressed concerns about the costing of the recovery framework and its impact on both advisers and their clients.
ASIC,… good luck collecting the kind of dough you think someone else should pay.
I’m willing to bet by 2019, there will be 50.0% less advisers working in the industry by then.
You left wing incompetents have made sure that for your ineptitude you have shown a complete lack of understanding of what a free enterprise economy is all about, have imposed Corporate Socialism.
This will leave all those that work in the financial services to rethink why they should continue, but more realistically remind those left leaning destroyers of true Australian values, that every Socialist model based on the redistribution of assets has failed. This will be just another one to add to that growing list of failures.
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