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FAAA baulks at another industry levy proposal

Mike Taylor17 October 2024
Privacy lock and wooden hand

Financial advisers are already over-exposed to industry funding levies and the Financial Advice Association of Australia (FAAA) is urging against the imposition of another one – this time covering privacy regulation.

In a submission responding to a Senate review of new privacy legislation, the FAAA has bluntly stated that notwithstanding the recommendations contained in the Privacy Act Review Report the work of the Office of the Australian Information Commissioner (OAIC) should not be funded by an industry levy.

It said the Government should consider other options for funding the OAIC.

The FAAA submission to the Senate Legal and Constitutional Affairs Committee noted that “financial advice is one of the most tightly regulated professions in Australia” ad that “due to the high existing regulatory burden the cost impact on financial advisers and the knock-on cost to consumers” a cautious approach to more regulation is required.

On the question of industry funding, the FAAA submission said the Government Response to the Privacy Act Review suggested that consideration would be given to an industry funding model for the OAIC but strongly urged against such a move.

“….whilst it is important that the work of the OAIC is properly funded, we would caution against the use of industry funding for the OAIC as, due to the breadth of economic activity where personal data is utilised, it is not clear how this could be effectively targeted or apportioned,” the submission said.

“This is likely to also increase the costs of trading for small businesses, where the regulatory burden already falls disproportionately. This would impose a double cost for businesses incurring increased compliance expense plus an industry levy. Any industry levy would flow through to increase the cost of services for consumers.”

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Fed up
22 days ago

Surely this is a joke ? Another levy ?

Frank
22 days ago

Another day, another joke out of Canberra. Absolute garbage.

When does this crap end?

Insane Canberra
22 days ago

Happy to pay a Levy for every Govt Service.
We just stop paying Income tax, GST, Payroll tax, Super Tax, etc 🙂

Let’s make Advice more affordable says Canberra bureaucratic buffoons = Levies!

one foot out the doora
22 days ago

This just goes to show the contempt and distain by regulators for the advice sector. A never-ending pole on stuff them!

Old Risky
22 days ago

This is the sort of rubbish that comes out of the modern version of Treasury advice. The boys over in Treasury seem to think that advisers make a matzoh and what’s another levy. They also of course would prefer to see Big companies providing advice and not the self-employed independent adviser force that we have today.

A limited number of AFSL’s has long been ASICs model, about 100 AFSL’s would be fine

And remember, Mr Jones has an office full of these Treasury people. There’s not a lot of common sense amongst that lot.

XTA
22 days ago

Here comes another moral hazard. It just encourages the bureaucracy to bloat at the expense of productivity and prosperity.

Tony
22 days ago

Another levy on financial advisers. This is just blatant persecution.

Phil Jarson
21 days ago

Treasury might as well get the longest stick in the bush because they clearly enjoy flogging advisers with bogus Levi’s. The income tax burden in Australia is already enormous, and these clowns can’t find the money to fund their own ideas? just pathetic !!!!

Ian
20 days ago

They don’t care about effectively targeting and apportioning a funding levy in a fair way. This will be like the ASIC levy. They will make sure the heaviest burden falls on financial advisers. It is crystal clear that their objective is to make financial advice an utterly unviable profession. Fees need to be very high to cover the ridiculous compliance costs and make enough money to pay wages. The next problem advisers will face is a breach of the best interest duty due to excessive fees. Client complaints about losses and excessive fees will rise in the next market downturn. AFCA will find a breach of the best interest duty due to excessive fees and then as these high fee advisers fail client losses will be sent to the CSLR and advisers who have been working hard for next to no reward to keep fees reasonable will be forced to pay the compensation. It’s a total cluster f#&k.