The FAAA has moved quickly to question one of the key recommendations made in the FSC’s recently-released white paper on the Future of Advice Licensing (see: FSC Calls for Tougher Oversight on AFSLs).
In a statement from FAAA CEO, Sarah Abood, the CEO notes her association will be reviewing the FSC’s proposals carefully, but it expects the proposals will not be well received by smaller advice licensees who Abood cautions would be hit hard by increased regulatory intervention and ASIC costs under the proposals, one of which includes imposing a minimum $25,000 ASIC financial advice levy to fund the recommended supervisory uplift.
The FSC does not represent financial advice…
“It’s important to be aware of the context of these recommendations,” says Abood, adding “The FSC does not represent financial advice, or financial advisers. It represents the interests of five large advice licensees, with the vast majority of its membership being made up of large product issuers (such as managed investment schemes). Its proposals should be considered in this light.”
Riskinfo will report further industry reaction and debate on the FSC’s White Paper, which at its core represents a clear move from recommending “structural reform” to recommending “supervision-led reform.”
