The increase in the Australian Securities and Investments Commission (ASIC) 2019/20 levies for licensees was the result of funding, an increase in the regulator’s costs, and the declining number of financial advisers.
In an answer to a question on notice by Liberal backbencher Andrew Bragg, ASIC said the Government increased its budget by $404 million over four years meet the level of regulatory activity as a result of the Royal Commission findings.
“The Government agreed at the time of increasing ASIC’s budget that the additional funding would be recovered under ASIC’s industry funding arrangements,” it said.
“Against this backdrop of additional funding and increase in ASIC costs, the total number of financial advisers decreased 17% from 24,919 in 2018/19 to 21,308 in 2019/20.
“The levy for licensees who provide personal advice on relevant financial products to retail clients comprises:
- A fixed component of $1,500 per licensee; and
- A graduated levy component calculated by reference to the number of advisers authorised by the licensee.
“A combination of an increase in total costs to be recovered, and a decrease in the number of advisers year-on-year, resulted in the graduated levy component increase from $1,142 in 2018/19 to $2,426 per adviser in 2019/20.”