Join our daily newsletter At The Bell to receive exclusive market insights
- The corporate watchdog has temporarily reduced levies for financial advisers back to 2018/19 levels, saving the sector some $46 million
- ASIC levies to be paid by financial advisers have been reverted to $1142 per adviser for the next two years, down from an expected $3138 for FY21
- Treasurer Josh Frydenberg says the reduction in levies will give financial advisers the certainty they need to deal with the impacts of COVID-19
- At the same time, the temporary reduction will help ensure Australians have access to affordable and professional financial advice
- A review of the ASIC Industry Funding Model is slated for 2022, to be completed while this temporary relief measure is in place
The corporate watchdog has temporarily reduced levies for financial advisers back to 2018/19 levels, saving the sector some $46 million.
Australian Securities and Investments Commission (ASIC) levies to be paid by financial advisers have been reverted to $1142 per adviser for the next two years, though the flat per-licence charge is unchanged at $1500.
The change means advisers will pay less than a third of the expected 2021 financial year levy of $3138 per adviser, not including the flat per-licence charge.
In a joint media statement with Financial Services minister Jane Hume, Federal Treasurer Josh Frydenberg said the temporary adjustment to the ASIC levies will provide financial advisers with the “certainty they need over the next two years to deal with the impacts of COVID-19”.
He added that the reduced levies will ensure Australians have access to affordable and professional financial advice.
The Financial Planning Association of Australia (FPA) said it welcomes the decision to reduce the cost recovery levies, alongside a planned review of the ASIC Industry Funding Model slated to be completed while this temporary relief measure is in place.
CEO Dante Gori said the FPA and its members have been calling for a review of the “flawed” industry funding model since it was first proposed and introduced three years ago.
“The FPA worked with and would like to thank our members for echoing our concerns about the current formula and their direct engagement with their local members of Parliament over the past two years,” Mr Gori said.
“We would like to thank the Government for listening to our concerns and those of our members.”
As it stands, the review of the funding model is set to take place in 2022 and will be taken on in consultation with the Department of Finance and ASIC.
“Our commitment to helping all financial planners build sustainable and scalable practices over the long term will be achieved through a consistent voice and courageous advocacy and a key part of this is through industry collaboration,” Mr Gori said.
He said the upcoming review will be a “critical piece of the puzzle” of making financial advice more affordable for Australians.
