Planner concern at higher regulatory costs
The Australian Securities and Investments Commission (ASIC) has taken both a funding and staffing cut from the Federal Budget, prompting the major financial planning organisations to express concern about flow-through cost impacts to planners.
According to the Budget papers, not only will the financial services regulator need to accommodate $120.1 million in savings over five years, it will also be reducing its staffing levels by around 200.
The changes prompted Financial Planning Association (FPA) general manager, policy and conduct, Dante De Gori to express concern at the broader industry impacts of the funding cuts to the regulator.
"The FPA will be paying close attention to the funding cuts earmarked for the regulator. In particular we will be keeping a watch on the impact to the funding in respect to any adverse effect in terms of licensing costs, and the like, for financial planners," De Gori said.
"We will also seek to ensure no impact on the regulator's services and capacity to monitor and supervise the industry."
The Budget papers show that while ASIC's average staffing levels last financial year stood at 1,782, this had been reduced to 1,573 for 2014/15.
At the same time, ASIC's registry business has been ear-marked for sale by the Government.
With ASIC having signaled to the Financial Systems Inquiry that it believes it should move towards a user-pays model, the Budget papers said the savings from the measure would be redirected towards repairing the Budget and towards funding policy priorities.
While ASIC has taken a cut to its funding, the Government moved to increase funding to the Australian Competition and Consumer Commission (ACCC), while the Australian Prudential Regulation Authority (APRA) has been forecast to virtually retain current staffing levels.
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
