Licensees earn their stamping fees and should keep them

stamping fees ASIC AFSL australian securities and investments commission investment collective David French FASEA Financial Adviser Standards and Ethics Authority code of ethics FPA financial planning association

9 March 2020
| By Mike |
image
image
expand image

“Not a day goes by without the Australian Securities and Investments Commission (ASIC) and other regulators making some half-baked announcement, designed to drive a wedge between consumers and service providers” and seeking to abolish stamping fees is one such example.

That is the analysis of the founder and managing director of the Investment Collective, David French, who has used a submission to Treasury on the Stamping Fees Exemption to argue that current arrangements should be maintained and simply reflect the consider work put in by financial services licensees.

“Let’s be clear from the start – stamping fees are a fee,” his submission said. “They are paid by product issuers, and they compensate for significant effort on the part of the AFSL holder. Assuming a desirable investment opportunity, these fees are earned in a very competitive environment, where a number of AFSL holders are vying for a limited amount of stock on offer.

The submission said that while the new Financial Adviser Standards and Ethics Authority (FASEA) code of ethics precluded advisers from receiving stamping fees, the same did not apply to licensees.

“There is however no rule preventing a Financial Services Licensee from receiving stamping fees, and neither should there be. Stamping fees are intended to offset the administrative burden of taking on a new issue,” it said.

French released his submission to Money Management in the context of the Financial Planning Association’s (FPA’s) submission having backed the banning of stamping fees.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 17 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 15 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 18 hours ago