ASIC cuts adviser levy from earlier estimates
The Australian Securities and Investments Commission (ASIC) has finalised the funding levy that advisers will pay for the 2022/23 financial year.
ASIC says in an email to insuranceNEWS.com.au the levy per adviser is $2818, less than the $3217 the regulator had previously estimated in its Cost Recovery Implementation Statement.
In the prior 2021/22 year the sector paid $1142, under a two-year relief scheme introduced by the previous Coalition Government to freeze levy fees at 2018/19 levels.
“Our Cost Recovery Implementation Statement contains our estimated costs and levies for each industry subsector in 2022/23,” the ASIC email says.
“The figures are indicative only, and where necessary and appropriate may change – as they have in this case.”
Advisers, who have been pushing for changes to the way the levy is calculated, have welcomed the reduction.
“When ASIC published their estimates for the 2022/23 year, in June, the total cost recoveries for financial advisers providing personal advice to retail clients was estimated at $55.5 million,” Financial Advice Association Australia (FAAA) CEO Sarah Abood said.
“The FAAA challenged this number and the underlying methodology used to arrive at it, as well as the lack of transparency in the calculations.
“In these final numbers, the total cost for our sector has reduced by nearly $8 million to $47.6 million. We have consistently and strongly advocated for relief for advisers on the ASIC levy, and we are glad to see that the government has listened to those calls.”
However, the FAAA remains concerned at the overall size of the levy and will press on with making the case for changes to the way the fee is arrived at.
“We will continue to work with ASIC, Treasury and the Minister’s office to support and encourage further changes including the implementation of the improvements to the Industry Funding Model that were recommended by Treasury in its recent review,” Ms Abood said.
“Making financial advice more affordable for Australians starts with making financial planning more affordable to practice, and getting costs down for financial advisers remains a high priority for the FAAA.”