Planning may be hit by Budget user-pays

government/ASIC/financial-planning/government-and-regulation/superannuation-complaints-tribunal/federal-budget/australian-securities-and-investments-commission/

13 May 2014
| By Staff |
image
image
expand image

Financial planning organisations and firms will be closely examining tonight's Federal Budget to see whether the Government will impose a more radical user-pays regime on the Australian Securities and Investments Commission (ASIC) which would result in higher licensee fees and other costs.

The Government signaled more than a month ago that it was attracted to a more definitive user-pays regime for the financial services regulators, with media reports canvassing that the Budget would include the sale of the of ASIC's business names registry as part of a broader sale of Government-owned businesses.

ASIC has itself proposed adoption of a user-pays funding model as the most appropriate solution, with its submission to the Financial Systems Inquiry advocating, "a user pays (cost recovery) funding model that better reflects the costs associated with market regulation".

It claimed such an approach could drive economic efficiencies and "can also provide better incentives for industries to improve their own standards and practices".

The submission argued that there were limitations and inefficiencies in the way ASIC is currently funded and that the "costs currently imposed on our regulated population do not accurately reflect the costs of regulation".

With the Government signaling a consolidation of government departments and agencies, there has also been speculation around the continuing status of the Superannuation Complaints Tribunal in the context of its funding reliance on ASIC.

There is also an expectation that tonight's Budget papers may reveal an eventual lifting in the superannuation preservation in line with a gradual increase in the age pension age to 67 and then 70.

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 3 weeks ago

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

2 months 3 weeks ago

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

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND