Increased AFSL costs to fund ASIC boost
Australian Financial Services Licence (AFSL) holders will be charged higher fees to pay for increased funding directed to the Australian Securities and Investments Commission (ASIC) under the Government's 2012/13 Federal Budget.
ASIC will receive an extra $23.9 million over four years "to facilitate the implementation and enforcement of the Future of Financial Advice [FOFA] reforms," according to a government release.
"The financial services industry will benefit from this funding as it will enable ASIC to provide regulatory guidance about the reforms and also implement a streamlined system for applying for an Australian Financial Services Licence," the Government stated.
ASIC will further receive $10.7 million over four years to develop and maintain an online registration system for auditors of self-managed superannuation funds.
The Financial Planning Association said AFSL annual lodgement fees will rise from $351 to $549 for a body corporate and from $144 to $225 for an individual, which will cause concerns for businesses already under increasing cost pressure due to the implementation of FOFA and other legislative changes.
The application fee for a new AFSL for a body corporate will increase to $1,485 (up from either $287 or $575, depending on method of application) and for a natural person to $825 (up from either $159 or $351), the FPA stated.
Overall, the FPA welcomed the total $180.2 million over four years that ASIC will receive. The FPA said it is looking forward to continuing working with ASIC on discussions around the professional code of conduct approval process and the formulation of the regulatory guidance material to assist financial planners comply with FOFA.
AUTHOR
Staff Writer
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
