ASIC levies on financial advisers will be restored to their 2018-19 levels and maintained for the next two years under new temporary measures to help advisers weather the impacts of COVID-19 as well as regulatory changes, the government has announced.
Institute of Public Accountants policy leader Vicki Stylianou said the news came as a welcome relief to advisers, who had been calling for assistance since even before the COVID-19 pandemic increased pressure on those in the financial services sector.
“This is a positive step for consumers and industry and is exactly what practitioners have been begging for the last three years at least,” Ms Stylianou said.
While the flat charge for businesses licensing financial advisers will remain at $1,500, the levy for each individual adviser will return to $1,142 annually for 2020-21 and 2021-22.
ASIC estimates this will save the sector $46 million less in levies in 2020-21 alone, and further savings the following year. Prior to this announcement, the adviser levy had risen substantially, climbing to $3,138 per adviser, a 31 per cent increase on the 2019-20 charge of $2,426.
“It is encouraging to see the government and ASIC undertaking practical measures to reduce cost pressures on financial planners and tackling the compounding effect of new regulation and overall inefficiencies in the system,” Ms Stylianou said.
A joint statement from Treasurer Josh Frydenberg and Senator Jane Hume announced the news, and also brought details about the Treasury’s intention to review the ASIC Industry Funding Model.
The review will be undertaken in consultation with the Department of Finance and ASIC, to ensure the funding model remains fit for purpose in the longer term given structural changes taking place in the advice industry. It will commence in 2022.
Ms Stylianou stressed the need to examine these costs.
“The quality review which was already scheduled for next year, and may include a holistic review of ASIC’s funding model, is incredibly important in assessing impact on industry. But it must be a genuine cost benefit analysis,” Ms Stylianou said.
