- No (82%)
- Yes (16%)
- Not sure (2%)
Our latest poll results are in, but we’re not quite sure what to make of it.
This conversation revolves around whether advisers should fund the cost of ASIC’s oversight of their conduct and activities – as long as the cost is fair and reasonable. So far, almost three in four advisers (72%) want nothing to do with contributing to ASIC’s operating costs, which the Government requires the regulator to fund from the sector.
It’s been well documented that the cost of delivering personal financial advice has sky-rocketed over the last ten years as a direct result of an increased regulatory burden imposed on advisers and advice businesses. It should come as no surprise, then, that when ASIC’s 2020/21 funding levy estimates were released recently – projecting a significant increase in the levy for a reducing cohort of authorised representatives – the spike in the levy has been roundly criticised by the adviser associations (see: Adviser Associations Slam ASIC Funding Levy Increase…).
Depending on your perspective, it almost raises an eyebrow that around one in four advisers (23%) have answered yes to the question. Presumably, this group of voters supports the proposition on the condition – as stated in the question – that the cost is equitable.
This is one of those issues where we may have been better served by asking the question in a different way. Perhaps the question should have been more along the lines of whether the major banks and institutions that have exited or are intending to exit financial advice should pay their share of regulatory costs (as suggested by The Advisers Association – see: Call For Banks to Share ASIC Funding Levy Costs).
Our poll remains open for another week, and we welcome your vote and your thoughts.