In November 2016, the government released a proposals paper for the new ASIC funding model, which shows the advice sector will be levied $24 million to refund the regulator, or $960 per financial adviser.
In a submission to Treasury last month, the FPA said there needs to be consideration for those advisers who operate in regional areas and generate lower revenue than their metropolitan-based peers.
“Australian Bureau of Statistics data shows that the average income in most regional areas falls below the relevant state average and the relevant capital city average,” the FPA said.
“Due to the disparity in revenue between regional-based and metropolitan-based financial planners, the ASIC industry funding levy will have a greater impact on regional financial planning practices.”
The FPA also recommended that the financial levy be reduced to remove the cost of ASIC enforcement activity.
“The financial advice levy must not include any ASIC regulatory activity earmarked for funding under the government’s $121.3 million over four years to ‘improve outcomes in financial services’,” the submission states.
In its submission, the AFA recommended there be rewards for good compliance that leads to less burden and costs for ASIC.
“The AFA considers that if cost recovery is the primary aim of the model, the levy system should reflect where the costs are being expended with a behaviour-based system to reward good behaviour with discounts on annual levies…” the submission states.
The AFA also argued that there needs to be consideration for small advice firms that support new advisers.
“Small business practices must not be unfairly burdened by being required to carry the same averaged load as larger or institutional licensees,” the AFA said.
“As the advice profession regenerates over the coming decade, the profession needs to remain attractive to new entrants and to support experienced advisers who impart their craft on the next generation.”
$1500 just got billed, daylight robbery….
Now lets be fair , $960 for all advisers including general advise “advisers” that work in call centres and accountants that set up an SMSF ‘s ad the company accounts clerk that hands out the Industry or Company super application form !!! lets not discriminate
Should ASIC work for the financial planners’ interest if they take money from the planners ?
If the answer is no, then this is a day-light robbery.
If the answer is yes, then this is a conflict of interest to the public.
Why the people and government are still picking on financial planners of which vast majority are working honestly and professionally?
The AFA and FPA have already cost risk advisers 30% plus of their income by being completely useless. Who do they think will listen to them in ASIC or goverment on this issue now anyway?
Advisers need to at least save themselves the cost of being a member of the AFA or FPA because its a complete waste of money.
This is one of the most intelligent comments I have read. Planners reading this should heed it. I recently cancelled my membership. These representative bodies… sorry no they are not, I don’t know what they do, but they don’t do anything for the adviser who is dying a slow & painful death
Isn’t this just typical of a no vision government. Both sides of the political divide are responsible for inept nonsense via regulation or should I say over regulation of our industry while they waste taxpayer money with wonton easy….a levy for our industry…really…what about not wasting money on a damn vote on gay marraige that costs the taxpayer nearly $200 Million for political idealogy.or now having to fork out money for unemployed autoworkers costing the taxpayer what…$2 BILLION per year..get real…pack of visionless and useless swill the lot of them. Need money says government…how about tax and business reform in a meaningful way to create jobs and growth……god help our industry if Labor gets in but the current lot are a joke
The AFA and FPA should be concerned as they will see members stop renewing due to being forced to pay ASIC a new tax dressed up as a levy…
If there is a levy it should be in proportion to complaints made against the Licensee that is responsible for training and supervising its representatives.
Good licensees already bear the cost of doing the right thing. They should not also be required to bear the cost of licensees that fail to provide adequate training and supervision.
ASIC waste so much money now in areas where they focus attention instead of focusing their activities where they should be focused. Why reward ASIC with this plan when they fail to manage their current monetary position
There should not be a levy at all . This is nothing but a blatant tax grab for which we will get nil return . The AFA & FPA should tell the government to get stuffed . Asic already rips plenty out of the system