ASIC levy set to increase for FY 2020-21
Licensees will be hit with an Australian Securities and Investments Commission (ASIC) levy of at least $1,500 plus $3,138 per financial adviser for FY 2020-21, an increase of $712 from the previous financial year.
ASIC released its ‘Cost Recovery Implementation Statement 2020-21’ that published estimated industry funding levies for the financial advice sector.
The adviser ASIC levy was an increase from levy amounts from 2019-20 that was a minimum levy of $1,500 plus $2,426 per adviser.
It said licensees that provided personal advice to retail clients on relevant financial products would have an estimated cost recovery amount of $71.354 million.
ASIC said the level was based on the number of relevant providers that were:
- Registered on the financial advisers register at the end of financial year; and
- Authorised to provide personal advice to retail clients on behalf of the entity.
The number of entities were 2,991 Australian financial services (AFS) licensees with 21,308 advisers.
Licensees that provided personal advice to retail clients on products that were not relevant financial products would pay an indicative levy of $2,817.
Licensees that provided general advice only would pay an indicative levy of $2,959.
Licensees that provided personal advice to wholesale clients only would pay an indicative levy of $27.
Insurance product distributors, based on 3,242 entites, would pay an indicative flat levy of $1,423.
ASIC noted its cost recovery implementation statement was open for submissions until 13 August, 2021, and that it would take into account stakeholder feedback in preparing the final statement.
Recommended for you
ASIC has issued infringement notices to two AFSLs over financial advisers providing personal advice while they were unregistered.
Australian retirees could increase their projected annual incomes by as much as 51 per cent through comprehensive financial advice, according to a Vanguard study, but cost continues to be an issue.
AMP has announced a senior appointment to its North leadership team, reinforcing the firm’s commitment to the advice industry.
Despite the financial adviser exam being rooted in ethics, two professional year advisers believe the lack of support and transparency from the regulator around the exam is unethical.
