Planner licensing to cost more under user-pays

ASIC/financial-planning/policy/Kelly-O'Dwyer/

23 November 2017
| By Mike |
image
image
expand image

Financial planners contemplating taking the self-licensed route can expect to pay more the privilege under the Australian Securities and Investments Commission (ASIC) user-pays regime being contemplated by the Government.

The Minister for Revenue and Financial Services, Kelly O’Dwyer has released the consultation paper outlining the proposed fee for service approach which will apply to ASIC, and it reveals that financial planners will be amongst those facing higher costs depending on what they intend to do.

According to the consultation paper released by O’Dwyer, ASIC is aiming to charge what it claims it actually costs with respect to processing licensing applications.

It said ASIC was “proposing to cost some licence applications at a more granular level (through tiering), which more closely aligns the fee being charged to the regulatory effort involved in assessing the application”.

It said this recognised stakeholder feedback that costing both full and limited licence applications at the same set fee might be a potential hindrance to encouraging entities from applying for a limited licence.

“The complexity relating to AFS licence applications will be determined dependent on client type and the services and products selected when applying,” it said.

The proposed fee schedule outlined in the ASIC consultation paper would see low-level complexity individual retail license applications costed at $3,349 while highly complexity retail individual applications would be costed at $7,537.

Retail body corporate complex applications were costed at $11,305.

Stakeholders have until 15 December to respond to the consultation paper.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS