ASIC announces 23–24 adviser levy

In its draft CRIS, the corporate regulator said the cost of regulating licensees that provide personal advice to retail clients was $48.4 million in 2023–24, with this to be divided among a total of 2,766 Australian Financial Services licensees, encompassing 15,371 advisers.

As such, the levy will amount to a minimum $1,500 plus $2,878 per adviser. This represents a slight increase from the previous financial year’s rate of $2,818 per adviser, which had been adjusted downward from $3,217 after widespread outrage and advocacy.

According to the Australian Securities and Investments Commission (ASIC), the cost of regulating the sector in 2022–23 was $47.6 million.

Of the $48.4 million projected for financial year 2024, enforcement costs are expected to come in at $19.51 million, while supervision and surveillance is forecast at $6.5 million.

Costs for regulating licensees providing personal advice on products that are not relevant financial products are expected to surge to $269,172 from $96,425.

For licensees that provide general advice only, ASIC predicts that the regulation cost will rise to $3 million, from $2.3 million a year earlier.

For those that provide personal advice to wholesale clients only, costs are projected to jump significantly to $1.9 million from $176,202.

More to come.