Our report on the FAAA’s warning that adviser CSLR fees could reach $5,000 a year generated plenty of reader interest this week…
The FAAA says financial advisers could face higher Government levies this financial following a 27% increase in the ASIC funding levy and the recently announced CSLR special levy.
In a statement, FAAA CEO Sarah Abood said the ASIC funding levy for 2025/26 is $3,037 per adviser, plus the CSLR special levy totalling $170.3m.
Abood said advisers could collectively pay an additional $20m on top of the $20m base levy, potentially pushing adviser levies to $5,000.
This increased ASIC funding levy is against a backdrop of record levels of fines…
“The most significant driver of this year’s increase in the ASIC funding levy is higher enforcement costs,” said Abood.
“However, the information provided by ASIC has no meaningful explanation of the reasons for this increase or where the $24 million cost of enforcement was spent.
“This increased ASIC funding levy is against a backdrop of record levels of fines awarded by the courts with respect to cases brought by ASIC – over $800 million.”
Abood said the FAAA continues to argue that the fines collected as a result of ASIC’s pursuit of wrongdoers should be used to offset the ASICl and CSLR Levies.
“It is unreasonable for the financial advice profession to fund this enforcement activity, when all fines are paid straight to consolidated revenue for the benefit of the Government,” she said.
“We repeat our previous calls for improved transparency from ASIC on how it allocates costs, and for Treasury’s recommendations for changes to the ASIC industry funding model – handed down in June 2023 – to be implemented.”
As Advisers retire, or leave the Industry due to the incoherent maze of contradictions and red tape courtesy of the Government, with a trickle of new entrants that does not replace those who have gone, though because of the Government's inability to resolve anything, they see the solution is to screw the reducing pool of honest Advisers by forcing them to pay more for the sins of a few.
It is like a bunch of cannibals sitting around a fire, on a plentiful island with massive food resources and coming up with the same old plan to go the easy and traditional path of eating each other.
All very good until you are sitting alone at the fire wondering why all the necessary chores are now not being done.
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