Akambo Financial Group managing director Anthony Kapetanovic has called ASIC’s draft Cost Recovery Implementation Statement (CRIS) “a welcome relief to all” in the advice industry.
On Monday, the corporate regulator’s draft CRIS predicted that the cost of regulating licenses that provide personal advice to retail clients on relevant financial products will drop from $25.8 million in 2020-21 to $24 million in 2021-22.
The estimated cost covers 2,759 AFS licensees and 17,402 financial advisers, while a minimum levy of $1,500 is expected, plus $1,142 per adviser.
“It is pleasing to see reports that the regulator expects to see a reduction in the cost of regulating licenses, which you would hope and expect given the reduction in overall adviser numbers,” Mr Kapetanovic said.
“Advisers are already under significant pressure to provide advice to clients at an affordable level, so the reduction in cost to $1,500 plus $1,142 per adviser is a welcome relief to all in the industry and opens the gateway for advisers to focus a new world post-Hayne Royal Commission and pandemic.”
The CRIS also read that regulating licensees providing advice on products that are not relevant financial products is also expected to be slashed from $189,817 to $65,575.
For licensees that provide general advice only, ASIC predicted that the regulation cost will be $505,467, down from $602,613 in 2020-21.
Mr Kapetanovic added: “The current pause on increases and further reductions, speaks to the significant changes occurring in the industry, including the overall quality of participants and need for better end-to-end client experiences.
“This provides a great step in the right direction for advisers especially those independent planners who are committed to grow and take advantage of the new opportunities arising.”
Final levies will be published by ASIC in December 2022 and invoiced between January and March 2023.
Feedback on the draft CRIS can be submitted until 28 June 2022.
It disgusts and outrages me that this fee even exists for many reasons but 2 specifically: 1) it is the very last thing that struggling advisers need and it should be paid out of the fines that ASIC pulls funds from. 2) the generally lousy job ASIC does anyway so that paying this fee for no service’ from that decrepit govt dept is an insult and a ripoff.
No big deal here. Why not offset fines imposed by ASIC to pay for their administration instead of charging honest advisers.
that is too obvious and ASIC must not give up on their mission to destroy the industry in such a way that they can’t be blamed directly.
I wish costs weren’t reducing as quick as adviser numbers.
Don’t you mean you wish costs WERE reducing as quickly as adviser numbers?