According to ASIC’s summary of levies for 2017-18, licensees providing retail advice to retail clients on relevant financial products will be given a minimum levy of $1,500 plus $934 per adviser.
Licensees providing personal advice to retail clients on products that are not relevant financial products have been given a levy of $1,905.
As for licensees providing only general advice, their levy is $592, while licensees providing personal advice to wholesale clients have a $547 levy.
ASIC said it will issue invoices in early 2019. It will also issue invoices to those that did not meet their legal obligations to register and submit details via the portal.
Licensees will be given until February to pay or “face interest penalties”. From March 2019, the regulator will begin pursuing late payments.
ASIC commissioner Cathie Armour said this was the first year of a new industry funding model that requires ASIC to recover the actual amount spent in regulating the industry sectors under its jurisdiction.
“Our goal is ensuring a fair, strong and efficient financial system for all Australians and lies at the heart of all our regulatory activities,” Ms Armour said.
“We have been working with industry to implement the new model and making public the cost of our regulation marks a significant milestone in this process.”
ASIC’s regulatory costs total $236.6 million, with the levies part of the government’s industry funding arrangements that became law in 2017.
Can ASIC come to us every year and ask for opt-in signature and a FDS and explain what they charged us for? This is hypocrisy to the core. We now get more red tape and pay more to keep our businesses profitable – BRAVO!!! Anything else we can do for you ASIC?
So In order to Understand this, as a single adviser operating with a dealer group, will I have to fund the $935 + a percentage of the Annual Fee, if handed down by the Dealer Group ?
As a minimum you’re going to be paying $935. For most advisers it will be the $935. The rest depends on the licensee and how they apportion and or absorb the licensee fee. It could be $935 or it could be more if for example your licensee is “issuing” products themselves and have to pay a higher licensee fee.
Now that i am paying ASIC wages and in the interests of transparency would ASIC please give a detailed explanation and report into:
• Why Dover was deregistered and BIG4 and AMP were not?
• Why were the banks issues less than Dover?
• Why there was not an option to sell the Dover business and protect the AR’s and clients?
• Why no other options were proposed to allow the Dover licence to continue without Mr McMaster being at the helm or involved.
• Its seems a travesty of justice what has happened to the 400 AR’s and their customers
These “Authorities”, “Commissions”, “Boards” and other “BureaucrapAcademic” parasites are now designed as “Revenue Gathering Institutions” [RGI], where previously they were funded by taxation and Government budgets.
Today, they are “Self Funding”, positive revenue contributors to Consolidated Revenue, based on the flaccid and irrational excuse that they should be funded by “Those who require regulation”, as if the entire economy and society itself doesn’t benefit from a stable, organised, generally law abiding market segment. this inherently unfair and imbalanced, and contravenes the basic philosophies of democracy, good governance, and taxation.
Essentially Scott Morrison [and many other corrupt politicians at all levels] have “discovered” the repetitive methodology of SHIFTING COSTS OUT OF THE BUDGET on to private shoulders – TAXATION BY STEALTH, and abusing a specific portion of society, not to mention making them “Profit Centres”.
Much like State Governments, Telecommunications, and Energy Suppliers have set up “Supply” and/or “Network” Charges instead of charging purely for consumption, we are now being ushered by the Federal Government into an era of crushing Bureaucratic Totalitarianism, and inevitably, dictatorship.
No one talks about reducing Government costs and increasing efficiency – only how to gouge out more and more from already overstretched taxpayers. Ever more Fines, Fees, Levies, Charges…
BTW, to the best of my knowledge, the majority of “Job creation” politicians trumpet about is in the “Public Service” – who do you think are now manning the Call Centres, if not largely new immigrants?
All the newer entities such as FASEA, like the TPB are doing their absolute best to create for themselves a permanent, extended operational and supervisory role, despite the mushroom like multiplication and overlap of Regulators. This is Basic Bloated Bureaucratic and Organisational Behaviour, typical of the over regulated, vastly intrusive, costly, and excessive QANGO and Government regulatory landscape in Australia. it needs to be stopped.
There is already a subterranean Civil War in Australia – Governments and the “Public Disservice” against the Citizen – it is only a question of how violent it is going to get.
The Licencees are passing down the cost to advisers. Obviously ASic and the rest of the compliance mob don’t want monitor our businesses; they’d rather send us bankrupt!
Im assuming ASIC wont investigate anyone unlicenced now, as they dont contribute to this scheme? $2500 per person = 10 hours of survellience per annum per authorised rep. Will they need to prove they have done this work? This just dosent add up, with this reasoning no one with a criminal record should pay for police.
$934 per adviser, with a minimum per license of $1500, not $1500 + $934 per adviser
Same organisation that came up with the corrupt and fictitious report 416 which led to risk advice commission slashed by half. Happy Christmas to the corrupt mongrels that are ASIC. One thought for all though is stop paying useless FPA or AFA memberships and its covered.
Honestly, ASIC needs to be paid for all the hard work they are doing in making sure that Advisers businesses are destroyed and that the big end of town take can take over . Besides, it is much easier to get the big 4 to pay up penalties and compensation, then wasting ASIC’s talented resources on hardworking and small licensees/advisers.
Tiny penalties ? the banks Illegally Advise 1,000’s of people to switch super over the counter via non financial advisers, zero AFSL compliance, etc and generate over $3 Billion in FUM. And end up with $3 mill in penalties. Wow yeh ASIC really make the banks pay hard in penalties.
there has to be a conflict of interest here doesn’t it? and i mean for the end client not just for the advice businesses.
With the costs of providing advice ever increasing which will flow on to increasing cost of advice for clients looking to plan for their future, and ASIC incentivised to drive this behavior as it increases their P&L…
a typical christmas present from ASIC…..can i opt out?
It’s not rocket science to charge the Big Banks are fee for breaches of the corps law.
Just wait till your Dealer group fees go up due to grandfathered commissions getting banned.
If ASIC was doing a decent job and protecting the Industry it might be worthwhile,but ,along with the callous banks they are destroying it !
This will be an “ongoing” annual fee. Given the track record of ASIC as revealed in the RC it will be a “fee for no service”. Hypocrisy!!
Another reason to leave
yes time to go
THIS DOES NOT ENCOURAGE INDEPENDENT ADVICE.
WAITING 20-30 MINUTES TO SPEAK TO AN ASIC EMPLOYEE IS ALSO UNACCEPTABLE.
THE FEES NEED REVIEW.
Graham, excuse my question but has ASIC ever said it encourages “Independent Advice”?
The consumer ultimately will have to pay. Just another small layer who will no longer be able to afford the advice the actually need.
I’ve already had to pay my $1,500 as I’m moving to a new licensing and my old licencee requested payment to release me. Nice surprise!!
You may be able to get a partial refund now
TPB
ASIC Levy
Increased PI
FPA/AFA fee
All these extra costs over the past year or so…. This is getting ridiculous!
You forgot FASEA and the cost of acquiring your new degree…
And the phase out of commissions
Easier to sell the business and retire, truly. Think about it. That’s what I’ll be doing just before these ridicuous and wholly unnecessary ‘exams’ need to be done in 2024. Now these unjustified and pecuniary fees – what next?! Little by little they are removing advisers from the game, starting with the experienced ones who protest all the time. Once we are gone the newer advisers won’t argue too much and RoboAdvice will have a go and then collapse. Life execs, politicians and industry associations/entities – self intertested, conflicted, duplicitous and fully useless all.
Lucky for ASIC they separated themselves from the public sector, and now they can turn all these extra fees into pay rises and bonuses.
Is their a conflict of interest not to cancel a licence and stop funding???? But its ASIC, that makes it ok.
so the big 4, ISA and AMP, along with other licencess , will pay ASIC. No conflict there if say a big bank with 1000 planners had it licence cancelled and no further income from that bank. But that will never happen.
?? Amount receovred will always be 100%, if the big 4, ISA and AMP had their licenses terminated it just means that your share will go up.
And we’re meant to be the parasites on the super industry. Levies from, AFA, TPB, ASIC, AFCA, PI, Auditors, Kaplan to meet training requirements, god forbid if you need any legal representation, without even taking into account the normal costs of running a business.
I’ve got a fairly new business and recently showed the wife all the costs before providing any advice, her jaw dropped.
there will be more people employed leeching off advisers than giving advice from 2019. I suppose that is all good for the economy and the public sector. You wont hear Fairfax or anyone in Canberra complaining. Big 4? Accounting firms – you can add them to the players on the sidelines who have no downside to their involvement in the industry. They will get govt and AFSL contracts to “protect” both side
Bloody ODwyer again, thanks for $4,400 extra tax bill for our AFSL and 3 advisers in Tegional NSW. What do we pay other taxes for and then have to pay for our own useless corporate cops that let the banks do what ever they want and tarnish the whole Advice industry.
Yep totally disgusted to have to pay more for this ASIC rubbish.
Round them up I say ASIC !!! $934 , why not round it up to $1,000 .$1,905, make it $2,000 , $592 , make it $600 …. oh no that sounds a bit much . Leave it at the first mark , CPI will lift it next year !!! Yes , now ASIC the price of SOA plans to consumers will rise buy $1,899 each , we can CPI the increase to clients next year ( if anyone will now pay $ 4,200 per plan ?) but who cares no one in Government .seriously ?
Really? Only one SOA a year?
And we wonder why increased education is needed??
just another fee that adds yet another cost on doing business. What happens to the fee as planners leave? I’m guessing that it will rise faster than a rocket to Mars
ASIC intentions are anything but fair, what a load of BS. They are out to make this as difficult, expensive and unworkable as possible. You only have to look at the recent multitudinous spate of random ‘surveillance’ letters they have sent out to work out their end game. The unfortunate thing is the real corrupt shonks in this industry, aside from the small number of moronic planners who embezzle or rip off clients, are actually those who are supposedly regulating the rules. This was clear from the RC highlighting deals ASIC had done with banks and the ISA while persecuting the small guys over the slightest infringement.