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ASIC confirms levy costs to rise more than 60%

The corporate regulator has released its final cost recovery implementation statement around industry levies for the 2020 financial year, confirming estimates published in November that costs will rise to more than $2,400 per adviser.

The summary of actual levies for the 2020 year reveals ASIC will charge a minimum levy of $1,500 per licensee that provides personal advice to retail clients, plus $2,426 per adviser.

In its cost recovery implementation statement, the regulator said the chief activities conducted relating to advice supervision during the financial year had included monitoring the restructure of large banks away from wealth management, monitoring the phasing out of grandfathered commissions, banning advisers with serious compliance concerns and conducting consumer testing of more appropriate labels for general advice.

The news confirms the concerns of the AFA raised earlier this year when ASIC issued drastically revised estimates of advice levies in November, which had increased more than 60 per cent compared to its June estimates of $1,571 per adviser.

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Following the association raising concerns with Treasury over the increase, ASIC removed the November estimates and it was hoped they would be revised down, but they were re-posted in early February after the government had seemingly been unable to confirm any relief for the industry on COVID grounds.

ASIC said it would issue invoices for the levies to industry participants shortly.

ASIC confirms levy costs to rise more than 60%
ASIC
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