Advice sector to refund ASIC $24m
The government has released a new proposals paper for the implementation of an ASIC user-pays funding model, which shows that the financial advice sector will be levied $24 million to refund the regulator.
According to the proposals paper, the industry funding model will recover the actual costs that ASIC spent during the financial year to regulate each sub-sector.
When it comes to regulating the financial advice sector, ASIC expects it will spend $24 million in 2016-17, 10 per cent of its total regulatory budget.
Personal advice providers on Tier 1 products will be levied the most at $22 million to recover ASIC’s costs, or $960 per adviser on the financial advisers register.
Meanwhile, personal advice providers on Tier 2 products will be levied $900,000. General advice providers to retail and wholesale clients will be charged $800,000 and wholesale advice providers to wholesale clients will be charged $200,000.
These levies are different from those in an August 2015 consultation paper, which proposed a levy on financial advice providers on Tier 1 products that involved a fixed component of $1,350 and a variable component of $470 per adviser.
“Submissions strongly opposed this model due to concerns it would place a larger burden on smaller licensees relative to larger licensees due to the fixed component. This concern has been addressed by moving to a fully variable levy,” the new report states.
However, the paper added that ASIC does not propose to charge a separate levy on robo-advice providers “at this time”.
The new funding model is part of a package of reforms the government announced in April in an effort to bolster the role of ASIC.
“The proposed industry funding model will include measures to support ASIC becoming a stronger regulator, through increased accountability, transparency and engagement with consumers and its regulated entities,” the paper states.
Submissions on the proposals paper will be open until Friday, 16 December, with a view to implement the funding model in the second half of 2017.
Former NAB adviser charged by court
An adviser formerly aligned with NAB has been charged with two offences of obtai...
Step-by-step guide to survey your customers
Please use the following step-by-step guide to share the ifa Client Experience S...
Advisers to ‘name and shame’ instos over commissions
Financial advisers across Australia are bankrolling a united effort to challenge...