On Friday, the corporate regulator released its cost recovery implementation statement for the 2021 financial year that shows that the costs allocated by ASIC to the advice sector have increased by more than $16 million; up over 340 per cent in the last four years.
FPA chief executive Dante De Gori said it must be reviewed “immediately” or more businesses will face closure.
“In light of extended lockdowns across the nation, the FPA questions the validity and timing of the increase, with millions of Australians unable to work and some businesses struggling to keep staff employed,” Mr De Gori said.
“The FPA strongly recommends that the ASIC industry levy be reviewed immediately to provide a more equitable and predictable annual levy, and for the year-on-year increases to better reflect the capacity of the financial planning profession.”
The FPA has cited two “major” issues that must be addressed – that the levy amount has proved to be unpredictable each year resulting in planners being unable to budget for the cost and that the levy has been increasing at a rate much faster than businesses are able to grow revenue.
“As a first step in addressing these challenges of predictability and dramatic levy increases, we call for the Government to urgently and immediately undertake a review of the ASIC industry levy,” Mr De Gori said.
“It has been four years since the levy was first introduced, and it is now critical to review its implementation and impact on the financial services sector. Making financial advice more affordable for all Australians starts with making financial planning more affordable to practice.”
too late, Royal Commission dictated fate. Made our bed , we have to lie in it.
Yep, the way ASIC and the Government treat financial advisers is appalling. Making advisers pay money to ASIC so they can keep expanding their doomed empire is absurd.
However, to think for a minute that businesses will close because the annual fees per adviser went up from $2,000 to $3,000 is pretty funny. Does Dante really think that is a convincing argument? Why not attack the real problem, that we shouldn’t be funding the litigation of the big banks, AMP, etc, especially when in most cases ASIC pulls out at the last minute with a bloodied nose and no-one actually being held to account.
We’ve seen a very strong attack by the AIOFP and a very wish washy approach here. Dante needs to resign as the culture of the FPA is rotten from the head. Wondering how many members had to leave for them to even issue this weak commentary.
Saying it’s unfair on the grounds as to how much it has increased or it’s fluctuates is quite wimpy argument and result in nothing. The FPA have failed to attack the core reasoning as to WHY it’s increased and that’s to pay for the sins of Bank and AMP at the licensee level and not actually the advisers actions..(ASIC admitted in a recent article published here)…The FPA don’t like calling out the sins of bodies that pay them. What’s needed is a direct link between ASIC and the big end of town attempting to get rid of Face to Face Advice. Attack the Banks like the mortgage brokers did and create a connection. This is what the AIOFP is doing well.
Great prediction!
Well said Nostradamus!
Just in the process a final departure now and planning my last 2 years.
Its too hard..
Its too risky financially…
Its too unfair…..and no one said life had to be fair! But it still sucks.
Politicians have destroys the industry, whilst not making Ethics training manadatory for themselves.
I can’t take it anymore.
All the levies are just another tax on business so government can say they haven’t increased taxes.
LNP, and probably Labor, couldn’t lie straight in bed.
AS long as they get voted back in everything else is collateral damage, no matter how unethical or conflicted the decisions are.
I had a retirement plan a few years ago and now i have black hole, all because after 20 years in the industry i don’t have a piece of paper to say i have a degree.
I have useless piece of paper saying i am a Certified Financial Planner.
My last 20 years counts for nothing and the Government says i know nothing after 1/1/26.
I could go on but if you have read this far you probably know how the rest goes anyway.
Good luck all.
when they destroyed the taxi licence there was compensation, i think they should do the same for financial planners
Class action against Frydenburg, Hume, Kelly O’Dwyer and the rest of them would send a message. We’d have a good chance too – these are people who don’t even know their own citizenship.
Must be annoying when your cushy job and ongoing income stream are cut. Fancy having to get out and service those clients that are paying your fees. Life’s not fair, but there is still a good income in financial advice for those that want to work for it.
Cushy job, ongoing income stream, fee for no service, reads exactly like the asic adviser levy and those that work within. We pay thier fees to subsidise everyone else. Its ok for asic to charge like that though, thing is the levy is even more unfair as this collective charging is not even linked to how much risk you present to asic itself, or the amount of work they do for you. Its based off thier expenses, which no one even has a say over, it is really unbelievable.
No, i service my clients very well. Many have been hit hard by Covid and can’t afford the ridiculous increase in insurance premiums by insurers as they have lost jobs. MY retirees have had good service and good returns but the numbers are dwindling. Like my enthusiasm. Time to move over for a younger, sleeker model such as yourself. Best wishes.
Regulators and legislators words: We need to make advice more affordable.
Regulators and legislators actions: Make advice from financial advisers more and more expensive.
Conclusion: They want somebody else to provide financial advice to those who need advice to be affordable.
Who would that be?
Industry funds? Robots? Financial counsellors? Instagram influencers? Money coaches? General advice providers?
You are assuming that regulators and legislators have actually thought of that last part. Pretty optimistic.
“Making financial advice more affordable for all Australians starts with making financial planning more affordable to practice.” He’s finally got it…
…and then he quits…??
This is such a crazy arrangement. I decide what you pay.
Well…. thank you Dante, that’s a nice change.
[b]Now, fight these bastards like your job depends on it!!![/b]
Agree…
Because it does
Really? That is like asking a puppet to speak!