The corporate regulator has published its Cost Recovery Implementation Statement (CRIS).
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.
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