Receipt of ASIC levy notices worry advisers
Financial advisers have been restating their concerns about the combined costs of the Australian Securities and Investments Commission (ASIC) Industry Funding Levy and the forecast cost of the levy covering the Compensation Scheme of Last Resort (CSLR).
The restatement of concerns by financial advisers has been prompted by their receipt of levy notices from the Australian Securities and Investments Commission (ASIC) covering the 2023/24 leviable year.
Levy notices shared by financial advisers with Financial Newswire have revealed what appears to be an average of around $7,000 to $9,000 depending on the number of advisers and the type of advice being provided
The notices all include the $1,500 minimum for financial advisers on relevant products and then $2,691 per financial adviser.
The levy notices make clear that payment is due by 13 March with a late payment penalty to be charged at a rate of 20% per annum calculated monthly until the levy is paid.
The Assistant Treasurer and Minister for Financial Services, Stephen Jones, last month announced a review of the CSLR after the scheme released its 2026 financial year initiate levy estimate calculating it at $77,975,000, well above the $20 million sub-sector cap for personal advice.
The minister said the Government had directed the Treasury to undertake a comprehensive review of the CSLR with the objective being to ensure it remains sustainable.
Early submissions to Treasury’s review consultation have suggested that the existing scheme arrangements should be scrapped and more equitable arrangements put in place.
One of the key terms of reference in the Treasury inquiry deals with “how the CSLR funding model is formulated, including its potential impacts on businesses who fund the industry levy”.
They are just going bulldozer this through, the review result will be so far down the track (regardless of election result) we’ll have already put our fees up to cover it, and those that decide to stay in the industry will just wait for the next installment of screwing FP and that will accelerate as our numbers drop.
So, as the number of advisers continue to drop annually, the cost of regulating these diminishing numbers keeps going up? Or, is it just greedy Bureaucrats with their snouts in the trough since they don’t need to open their wallets…
Disgusting.
Dear has shoes,
The original ASIC adviser levy was always based upon existing adviser numbers.
It wasn’t about what’s fair but building a financial “war chest” funded by advisers so ASIC could prosecute them.
When the number of advisers has almost halved from where it was about 4 years ago, there was only one outcome for advisers based upon the ASIC model.
I’ve been saying since the exodus of advisers from the industry/profession, good luck to the last man/woman still standing.
The CLSR is no different,
Absolute unjustifiable theft!!!!
All Advisers should refuse to pay. This is absolutely unacceptable theft from small business owners. Disgusting!!!
This labour Government’s got to go. If you vote labour you are an absolute idiot! History shows they do this to small business and average workers time and time again.
If you gave them all the Gold in Fort Knox, it would have a debt by the time there term was finished. Labour is the most unqualified, irresponsible, useless government this country has ever seen. Theirs not a brain cell amongst them.
We need to repeal CLSR, collectively sue ASIC and the Government for the money already stolen, and reform the industry body to reflect reality.
Better off becoming a YouTube influencer than bust your gut in this industry. What a rort!!! The unionised Industry funds are ripping off their retiree members, and their mates in the Labour Party are ripping off advisers, and indirectly the balance of retirees , and super fund clients. Theirs Labour Party are more like a cartel taking their cut from every transaction, justified or not. They are criminals!!!
Labor Party Theft
Agreed
ALP Theft too
well said!!!!
I’m guessing by 2030 more than 70% of Australians will work in the Public Service and we’ll be calling each other Comrade.
I have complete faith in the people that introduced the term Qualified Adviser, and wrote legislation that you could not renew a fee arrangement or provide a fee disclosure statement on Monday until after the Anniversary Date falls due on Tuesday.
Comrades let’s just have faith our glorious leaders are doing the correct thing for us. I’m off to work in the AustralianSuper call centre selling getting more FUM and some salary sacrifice advice via a 15 minute phone call.
if you can’t beat em, join em…