The consultation paper, titled Introduction of ASIC’s fees-for-services under the industry funding model, is based on ‘time recording’ data collected by the corporate regulator.
ASIC’s new fees will take into account the “weighted average hourly staff rate” and the “average number of hours to assess and process the form [in question]”.
The result is substantially higher AFSL application and variation fees for advisers.
For example, under the current system a typical online AFSL application costs $914 for an individual and $1,643 for a body corporate.
Under ASIC’s proposal, a ‘Retail individual low complexity’ online AFSL application will cost $2,233 and a ‘high complexity’ personal application will cost $5,025.
For a retail body corporate AFSL, the fee will be $3,721 for a ‘low complexity’ application and $7,537 for a ‘high complexity’ licence.
The consultation paper will see hikes in nearly every fee advisers pay. Currently it costs an adviser only $39 to request a voluntary suspension of an AFSL, but that is set to jump to $899 under ASIC’s proposal.
Commenting on the proposed changes, ASIC commissioner John Price said, “The current fees for these activities do not reflect their actual cost and the government is seeking input from industry on changes to address this.”
Advisers and other interested parties have until 15 December 2017 to lodge a submission on the consultation paper.
Its obvious that the government and ASIC’s goal is to wipe out the IFA market and leave all consumers to the mercy of those greedy b(W)ankers. Bring on the Royal Commission!
This is just a rort again. AMP and the big 4 banks are laughing yet again. $7,500 to set up an AFSL. Up to $11,000 if you wish to use paper. Individuals don’t set up an AFSL you usually set up a body corporate so anything more than a limited license & it’s $7K. The big banks love this because they are continually appointing and cancelling advisers everyday..AR and CAR’s and now they’ll pay nothing… zip….narder….nothing..nought.. Just why is it that they are getting off so light? Any one notice just how quite the FPA are?……for some reason they don’t like to encourage independence… maybe it’s the dollars they get from yes you guessed it the banks..
Adviser wiped out by government stupidy – Over Complicated O”Dwyer at her best.
How about you Pollies fund a Federal government ICAC and let’s see you pay for your own policing.
O’Dwyer you are a complete stinker !!
It’s good.
Keep going and there won’t be an industry to regulate.
Great is it not. So more education, new education body, new code of ehtics for the industry, lower commission on risk, more compliance, our businesses compromised in value and now more fees.
What the hell. AFA FPA what are you doing for us as advisers. It seems very little. So, with education now reflecting a degree of better qualification, an industry code not within your control, what relevance is there for your existence…..not much. As for those membership fees….well, I can say what I think of this but the moderator will not like my language as I am but one of many and adviser that is more than p..d.of.