Advisers have been given only three weeks to make comments and submissions on the draft regulations which will dictate the operation of the industry funding model proposed for the Australian Securities and Investments Commission (ASIC).
Under the proposals, ASIC would collect around $1,000 per adviser per year to fund its operations. Levies have been calculated by the level of regulatory costs associated with a sector of financial services divided by the population of that sector with estimates of $22 million being paid by the wider advice sector (see: Proposed ASIC Funding Model Would Cost $1,000 Per Adviser).
The Financial Planning Association and Association of Financial Advisers have supported the funding model but have stated adviser levies should be reduced for those who have not breached financial services laws and in recognition of costs borne to improve levels of education and professionalism (see: Reduced ASIC Levy Should Apply for Compliant Advisers).
“Industry funding for ASIC will ensure that regulatory costs are recovered from those entities that create the need for regulation”
In releasing the regulations the Minister for Revenue and Financial Services, Kelly O’Dwyer said the funding model was “…a critical component of the Government’s plan to improve consumer outcomes in the financial system”.
“Industry funding for ASIC will ensure that regulatory costs are recovered from those entities that create the need for regulation. This will make industry more accountable and by increasing transparency of ASIC’s costs and activities make ASIC a stronger regulator,” O’Dwyer said.
The model is expected to become operational in the second half of 2017 and submissions can be made at the Treasury website by 26 May.
Is this not what I pay taxes?
Is there no end to what Govt is trying to do to destroy small business? This Govt is no different to the Labor Party and the sooner Mr Trumbull is gone, the better!
Be careful what you wish for!
The one thing everyone knows who has dealt with the legal profession, is that they are expensive and the end result can be hard to understand.
Having to pay a funding model for what is in effect, more Lawyers, is galling for all the honest advisers who have never had a complaint and always have had their clients best interest as their focus.
The only fair model, is for the Government to simplify and clarify what is required and to enforce these simpler regulations with appropriate fines to Companies that show a disregard for the clients.
Throwing money at ASIC paid for from the 99% of honest advisers who do not need to be involved with ASIC due to their great service to their clients, is only going to create more financial stress and risks to their small Businesses, with no input being allowed or accountability being placed on ASIC for their legal actions that can cost substantial amounts of money chasing the 1% of crooks and Bigger players who have deep pockets with little care for any one but themselves.
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