The ASIC Supervisory Cost Recovery Levy Bill 2017 was passed in the Senate today without amendments.
According to a statement from Minister for Revenue and Financial Services Kelly O’Dwyer, the bill intends to improve outcomes in the financial services sector.
This is by having those entities regulated by ASIC bear the regulator’s costs, rather than Australian taxpayers, the statement said.
In November 2016, the government released a proposals paper for a new ASIC funding model, which shows the advice sector will be levied $24 million to refund the regulator, or $960 per financial adviser.
The bill was passed despite both the FPA and AFA expressing concerns over the funding model.
In its submission to Treasury, the FPA said it was worried the model would “create a large burden on small businesses”. The FPA was also concerned with the lack of detail and transparency involved in the consultation process.
In April, the AFA called the funding model “unfair” to advisers, and likely to put financial advice out of reach for those who need it most.
The statement from Ms O’Dwyer said regulations that provide additional detail on the operation of the industry funding model will be made shortly, ahead of the commencement on 1 July 2017.
The model is in response to a recommendation made in the 2014 Murray Financial System Inquiry, as well as the 2013 Senate Inquiry into ASIC’s performance.
the comments on here are always one-eyed, $1k per head is nothing. $5 extra per client, or 1 less coffee a day, whatever is – but that’s not the point. The point is, why should Advisers pay for the regulation that they didn’t write. Citizens pay for police, politicians and all other regulation through income tax. Why is one group of workers singled out? Why is one industry of people considered beneath society in that they have to pay for their own police. The cost is not the issue, it’s the ethics of the decision. Maybe ASIC should review the licensing regime and also the effectiveness of the regulator itself.
It really does make you want to maybe look at another revenue model or industry to work in.The FP industry is so over regulated and, lets face it, ran by people who absolutely no idea on how to run a business.
So real estate agents, accountants, junk insurance peddlers, and roboadvisers not only benefit from not being regulated, they also benefit from not having to pay for regulation! A win-win for dodgy products and advice, a big loss for consumers.
I vote for a Federal ICAC and for Kelly ODwyer and her Pollie mates to all pay at least $960 pa to fund it.
ODwyer, you are a shocker
Guess I’ll increase my advice fees then.
I don’t do drugs, so could the authorities please claim all the rehab money from the drug dealers please. Thanks! This will help me afford the $960 as I expect my taxes should reduce…..
It’s clear the government haven’t got a clue how the system works, who benefits, who will go without, or how this will thin out the ranks of independents to the benefit of the bib players. Shame on all politicians!!
Up go my fees and so do all my client fees and guess what, the dealer groups get more income as a result of increased revenue but nothing has changed and the problems still exist with the ones causing this increase
Does this ill-conceived idiocy ‘really’ surprise anyone here? Come on now, haven’t we seen worse in recent times from ASIC and the government regarding our precious industry. Why would this stupid little thing surprise anyone now. Would have been big news some time ago but now with all the ‘twilight-zone’ occurrences and laws in our game this is no biggie, really. Incredibly galling and annoying but no real biggie. Am I right? Blue pill, please.
As well as a Government who doesn’t care about advisors or our industry, and to top it off with a Finance Minister who has no idea.
The joys of having a crap economy. This is happening to many industries from the fishing industry to financial planning. all now being hit with little small taxes every step of the process. Whether it’s $960 here, or a fee to register with the TPB it’s a stupid way for businesses and an economy to run. yet more red tape in the process.