ASIC released its paper titled ASIC cost recovery arrangements: 2017-18 on Friday, which reveals the exact amount that each subsector in the financial services industry will pay annually as part of the regulators new funding model.
According to the paper, a fixed levy of $1,500 has been introduced for licensees authorised to provide advice on relevant products.
The graduated levy for these licensees is based on the number of advisers on the Financial Adviser Register, ASIC said.
However, for securities dealers, large securities exchange participants and large futures exchange participants, the graduated component will exclude advisers who only provide advice on quoted products, products traded on a foreign financial market or basic banking products.
“We attribute costs to each subsector based on the amount of effort we spend regulating that subsector,” ASIC said.
The first invoices will be issued in January 2019 and will recover costs for regulatory services for the 2017-18 financial year.
In January, the AFA and FPA lobbied for a lower levy for advisers while the Life Insurance Customer Group (LICG) launched a fight against the levy, saying the cost is unreasonable for small business owners and will “have to be passed on to the consumer.”
$1500 fixed fee for each AR in the industry. Does that fee include the cost of keeping coy execs and managers who control ARs, in line who -it would appear are still a protected species or will ASIC have a separate levy to keep them in line. These so called responsible unknowns are still in the clear.
The way I’m reading that story says the AFSL holder pays the $1,500 or whatever fee – not the AR. Why do you say the AR is paying it. I’ve obviously misunderstood it if that is true. Please explain Pauline?
Because if the Adviser owns its own AFSL it is the adviser that pays. Also who is to say the AFSL holders wont pass this fee on to their representatives.
Squeaky, the dealer group is not going to absorb the cost. You’re going to be paying $1,500 to be an AR. If they’re absorbing the cost then at what price and you’ll find you”re probably working for AMP.
Squeaky- it’s $1,500 “per” adviser. A dealer group with 20 to 200 advisers aren’t going to be absorbing the cost. You’ll be paying it come January/Feb 2019. It’s a levy, a tax, it’s what happens when the economy goes sh$$%%t and the government can’t lift taxes because they’ll risk losing an election. We’re not the only industry facing this. Google what’s happening to the fishing industry.
How Can ASIC send a bill in Jan 2019 for the previous 12 months and expect licensees to recover this amount without knowing the amount and if it is per representative , CAR or licensee