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ASIC levy ‘just an estimate’ says FAAA

Mike Taylor10 July 2024
Fractured currency montage

The Financial Advice Association of Australia (FAAA) has signalled it is unhappy about the prospect of an higher ASIC levy but is prepared to wait for the final outcome.

And the FAAA’s approach may be warranted in circumstances where ASIC’s estimate of its levy cost for 2022-23 declined by $399 from the time when it was published in July, last year, and December when the final amount was announced.

When ASIC announced its levy estimates for 2022-23 it nominated a $1,500 base plus $3,217 per adviser but by the time of the final announcement that had become $1,500 plus a somewhat more modest $2,818.

FAAA chief executive, Sarah Abood issued a statement in the wake of the ASIC levy estimate saying, that, at first glance, “it seems that the ASIC levy per adviser will not move very much for this financial year, compared to the final levy for the 2022/23 financial year (which was $2,818 per adviser).

“It’s important to bear in mind that this is just an estimate, and the final amount could change. We think this amount remains much too high for a shrinking small business financial advice sector, the vast majority of whom are doing the right thing, yet are paying for supervision and enforcement against those who are not – including those who are unlicensed,” she said

“We continue to advocate strongly for the ASIC levy to be reduced, along with more transparency on how these costs are arrived at.”

“Again, we call on the Government to implement the findings of the 2023 Treasury review into ASIC’s Industry Funding Model (IFM). That report was delivered over a year ago now, and seems to be gathering dust.

“More recommendations to help make the levy fairer and more sustainable are also contained in last week’s Senate Economic References Committee report into the capacity and capability of ASIC, to which the FAAA contributed. As this report notes, ASIC is a highly profitable operation for the government, making a surplus of $1.4bn in the 2022/23 financial year. This is in large part because fines and penalties associated with enforcement actions are paid into consolidated revenue. Government has plenty of room to make the levy fairer and more sustainable.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Get Stuffed Canberra
2 days ago

Govt Theft
Advisers are ASIC litigation funders and get Zero return on proceeds banked.
The worst litigation funding deal in history.
Coupled with the fact Advisers pay for ASIC to be utterly useless.
10 years of ASIC knowing of Big Banks FFNS and they did nothing until RC. Then Real Advisers pay ASIC legal fees to fine the big banks.
10 years of warnings of Dodgy Dixon’s MIS fiasco and ASIC do nothing until it’s too late. Now Real Advisers pay ASIC costs and CSLR to bail out corrupt Treasury & ASIC Dixon’s clients.
EHOUGH IS WAY BEYOND ENOUGH.
GET STUFFED CANBERRA
As for the FAAAAAAAAAAAAAAAAARK
Great job let’s wait for a tiny reduction too $2,650 each and claim a win.
I am putting up my Money Coach shingle and stuff Canberra, no point being a Real Adviser.

Chris
2 days ago

I understand your frustration and despair.
The dills in government don’t realise that when we’re gone, there’s no coming back – new entrants are non-existent. The industry will go. They are taxing the industry to death.

Chris
2 days ago

FAAA bring out their wet lettuce leaf again.
Everyday they need to be totally opposing this levy. Screaming it from the rooftops.
It is fundamentally wrong and needs to go.

What is a good idea is for the new federal anti-corruption body to be funded from a levy on politicians.