A financial services lawyer has broken down the levies expected to be paid by financial advice providers as part of the government’s ASIC user-pays model, proposed for implementation next year.
According to Sophie Gerber, director at Sophie Grace Compliance and Legal, the government is due to reconvene by the end of this month, and licensees will be waiting to see if the new funding model for ASIC is moved forward.
While details of the model are yet to be announced, the government has indicated it will require “those that demand the highest level of regulation by ASIC to pay more to the regulator”, Ms Gerber said.
Licensees would be expected to pay a base levy of $250 for the licence itself, as well as additional levies for some authorisations, such as financial advice.
Those who are only authorised to provide advice on Tier 2 financial products would be expected to pay a flat levy of $750.
Those authorised to provide advice on Tier 1 products would be charged a base levy of $1,350 plus an additional amount of $470 for each financial adviser who is registered on the Financial Advice Register.
Ms Gerber also noted there will be a consultation period for the ASIC user-pays model.
“The government will consult on the introduction of an industry funding model in line with the best practice requirements,” she said.
“No final decision will be made until the final consultation period and the ASIC capability review have concluded.”
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