How much will advisers pay in 2021/22 levy?
The Australian Securities and Investments Commission (ASIC) has released the indicative levy for advisers in 2021/22 in its latest cost recovery implementation statement.
According to ASIC, licensees that provided personal advice to retail clients on relevant financial products would have a minimum levy of $1,500 plus $1,142 per adviser.
This was based on the adjusted number of advisers on the Financial Advisers Register (FAR) and the number of days authorised.
There were 2,759 AFS licensees in this category with 17,402 advisers and they had an estimated budgeted cost recovery amount of $24.012 million.
ASIC said the amount was capped based on the temporary Australian financial adviser levy relief which restored the graduated component of the levy to its 2018/19 level for two years.
In 2020/21, ASIC said the estimated cost for licensees who provided personal advice to retail clients on relevant financial products was $71.3 million and had an actual cost of $25.759 million, as a result of the levy.
For licensees that provided general advice only, they had an indicative levy of $486 per year for 2021/22 while licensees who provided personal advice to retail clients on products that were not relevant financial products had an indicative levy of $118.
Regulatory costs to be recovered via industry funding levies were $332.266 million and $68.234 million was to be recovered from the financial advice sector. This was divided between $54.052 million in cost recovery levies and $14.182 million in statutory levies.
AUTHOR
Laura Dew
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