ASIC has released the final figures that will apply for the ASIC funding levy for the 2022-23 financial year with an estimated $400 per-adviser saving from the previous estimate, according to the FAAA.
FAAA CEO Sarah Abood says that based on the information in two legislative instruments released by ASIC this week “…we estimate that the final amount will be around $400 per adviser lower than the original estimate, at $2,818 per adviser.”
While this represents a saving on what had previously been indicated in the June ASIC estimate (which was $3,217) it is still higher than the $1,142 levy that applied over the course of the last two years’ freeze (see: No Extension to Adviser Levy Relief).
Abood says that when ASIC published its estimates for the 2022-23 year, in June, the total cost recoveries for financial advisers providing personal advice to retail clients was estimated at $55.5 million.
“The FAAA challenged this number and the underlying methodology used to arrive at it, as well as the lack of transparency in the calculations. In these final numbers, the total cost for our sector has reduced by nearly $8 million to $47.6 million.” See: ‘Drastic and Unfair’ Levy Increase.
Abood notes that the FAAA has ”…strongly advocated for relief for advisers on the ASIC levy, and we are glad to see that the government has listened to those calls.”
…the FAAA remains concerned at the overall size of the levy and the lack of transparency around how it is calculated…
However, she notes that the FAAA remains concerned at the overall size of the levy “…and the lack of transparency around how it is calculated.”
It will continue to work with ASIC, Treasury and the Minister’s office “…to support and encourage further changes including the implementation of the improvements to the Industry Funding Model that were recommended by Treasury in its recent review.”
Click here to see the legislative instrument.
