The Advisers Association is the latest representative group to push back against ASIC’s 2020/21 funding levy estimates for the financial advice sector.
Following the recent release of the 2020/21 funding estimates, the association, which advocates on behalf of AMPFP and Hillross advisers, has renewed its call for major banks and institutions that have exited or are intending to exit financial advice to pay their share of regulatory costs.
In a statement released this week, TAA CEO, Neil Macdonald, says the TAA holds “…grave concerns about the ever-increasing financial burden being imposed on small business advisers and ultimately their clients.”
…the users who caused the current regulatory cost burden are not being made to pay for it
In calling on the Government to rethink the industry funding model in relation to financial advice, Macdonald says he appreciates ASIC’s hands are tied in relation to cost recovery, and that the association is not opposed to a user-pays model, “…however the users who caused the current regulatory cost burden are not being made to pay for it,” he said, arguing that in exiting the advice sector, “…the big banks, despite being largely responsible for some of the poorest behaviours, are able to avoid paying.”
The association renewed an earlier call it made for the Government to have ASIC impose an exit fee on the major banks and institutions that have “jettisoned” their advice networks or are in the process of doing so.
Macdonald reiterated that expecting small business advisers and ultimately their clients to keep paying ever-increasing costs for the sins of the past, largely committed by the big end of town, is unconscionable.
See also: Adviser Associations Slam ASIC Funding levy Increase
