ASIC needs to work harder and more efficiently if it wants to reduce fees and improve access to advice, says the SMSF Association.
Advisers are facing an “ever-growing list of fees and levies” that make advice delivery “increasingly uneconomic” – and the SMSF Association believes ASIC needs to up its game if it really wants the industry to survive.
“With regards to the ASIC funding levy, which is specifically in ASIC’s remit, we encourage ASIC to strive to ensure that their levies are being reduced over time through improved processes and increased efficiency, especially as the growing use of regulation technology reduces regulation and compliance costs in financial services,” the association said in its submission to ASIC on improving access to advice.
“When ASIC improves its performance and efficiency in undertaking regulatory fee-for-service tasks, this should result in lower fees for the financial services industry.”
The association believes that ASIC should be allowed more “more discretion to reduce fees”, particularly around the financial advice sector, and that the regulator should introduce a cap on the annual levy, limit percentage increases, or allow for a lower level of cost recovery in the upcoming years.
“We are concerned that if this doesn’t occur, the funding levy could result in further adviser exodus, stifled competition and less access to advice for consumers,” the association said.
ifa has recently heard from a number of advisers who are concerned about the rising levy, along with the potentially increased costs arising from ASIC’s so-called litigation blitz.
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