The AFA has escalated its concerns to the Government around the ASIC Funding Levy increase, which it describes as excessive.
In a statement to its members AFA said that in July it made a submission to ASIC on the 2019/20 ASIC Funding Levy, recommending that in the context of the Covid crisis, the Government waive the ASIC Funding Levy for the 2019/20 year which would normally be invoiced in January 2021.
The association says that in its submission it highlighted its concerns with the rapidly rising costs of ASIC “… at the same time that we see a decline in the number of financial advisers providing personal advice”.
It adds that ASIC has projected that the 2019/20 ASIC Funding Levy will be $1,571 per adviser, which is a 38 percent increase over the last 12 months and a 68 percent increase over the last two years.
“ASIC does not have the power to waive the ASIC Funding Levy and we have therefore escalated our concerns and our proposal to the Government and await a response,” the organisation says, promising to keep members updated.
To see a copy of the AFA submission click here.
ASIC levy, TPB, FASEA exam, licensee fees, PI insurance, CRM / software, fixed office expenses… These are among the expenses that are at a minimum simply to operate a single adviser practice before I can even pay myself or start outsourcing. Add on education expenses for those who don’t already have the qualifications, and you can easily see that the future of the smaller guys is in jeopardy.
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