The government’s ASIC industry funding model is unfair to advisers behaving ethically and is likely to put financial advice out of reach for those who need it most, AFA chief executive Philip Kewin has said.
In a statement last week, Mr Kewin said the ASIC Supervisory Cost Recovery Levy Bill, which was introduced into parliament recently, is unfair on advisers who are doing the right thing.
“There are currently no provisions to provide discounts for those advisers who are doing the right thing,” Mr Kewin said.
“This seems unfair, particularly when all advisers have already had to bear a raft of costs, including increased professional indemnity insurance premiums and costs associated with upgrading fee disclosure statements and incorporating opt-in arrangements.”
In its submission to Treasury on the bill, the AFA said any further increase to the cost of providing advice is likely to put quality financial advice out of reach of those who need it most.
"Financial advice should not just be for the wealthy and this model should not unintentionally facilitate that outcome," the AFA said.
The AFA is also concerned that unless these ASIC levies are capped, there is no provision to contain the costs passed on to advisers.
There should be discounts for advisers doing the right thing, capping of increased costs and a minimum five-year review, the AFA said.
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