Advisers satisfied with ASIC: AIOFP

According to Association of Independently Owned Financial Professionals (AIOFP) executive director Peter Johnston, members of the AIOFP have few complaints about the Australian Securities and Investments Commission (ASIC) beyond the levy.

“Besides for the ASIC levy issue, we are having difficulty getting any other complaints about ASIC performance from members! Even after some well-placed phone calls yesterday specifically asking the question, not one could identify any other issue, amazing stuff and well-done ASIC,” Mr Johnston said.

The reason, Mr Johnston said, is that advisers have turned their ire towards politicians, rather than the corporate watchdog.

“It seems advisers are content with ASIC’s performance as the ‘police’ of the industry, which is a good thing, but it also indicates advisers are now acutely aware that it is the politicians that have concocted the savage legislative environment over the past 10 years and its only them who can change it,” he said.

Once again pointing to the AIOFP’s recent survey that found 87 per cent positive response to whether a person will change their vote if any financial services legislation is detrimentally affecting their financial position, Mr Johnston said “all politicians are now realising the power the advice community has with their client base”.

“You may recall the Grim Reaper Memorial Stone at the St John’s Co–Cathedral in Malta and its inscription reading – ‘You who tread on me will soon be trodden on’ … this is the message we want to convey to Canberra, we want this mess fixed sooner rather than later or we get politically active in marginal seats leading into the 2024–25 federal election (like we did in the seat of Kooyong),” he said.

In July, following the announcement of the increased ASIC levy, Mr Johnston said the AIOFP would increase its lobbying on the issue.

“We have decided to commence some lobbying on this levy issue due to the pain and anger this is causing many members, we have not seen this much frustration since the grandfathering revenue ban was announced,” Mr Johnston said at the time.

“You may recall we suggested commencing this strategy leading into the final 12 months of this term of government and not put another issue on the minister’s plate, but we will do both considering the circumstances.”

While ASIC reduced the levy by $400 per adviser earlier in November, it did little to improve the sentiment among the advice industry, including among the AIOFP.

“We are obviously pleased the levy has been reduced but it looks like it was only due to an accounting miscalculation,” Mr Johnston said.

“The AIOFP would prefer it being eliminated due to the bizarre notion of the advice community directly funding its own police force to investigate and prosecute itself.

“Considering the government is quick to snaffle any penalties paid by misbehaving institutions into general revenue, we think it is only fair that, at the very least, an independent party decides on the quantum to be paid, ASIC is far too conflicted to make this call.”