The Australian Securities and Investments Commission (ASIC) has increased the per adviser levy imposed on licensees without formal notice or fanfare, according to the Financial Planning Association (FPA).
The FPA’s head of policy and standards, Ben Marshan has used social media to point out the per adviser levy rise which he said had been lifted from $907 to $1,142.
In doing so, Marshan provided a link to the relevant page on the ASIC website which confirmed licensees that provide personal advice to retail clients on relevant financial products would pay a “minimum levy of $1,500 plus $1,142 per adviser”.
Marshan said he believed financial planners and licensees needed to be aware of the changes for budgeting purposes.
Comments
26% increase in annual ASIC adviser fees!
I do understand that they have an open cheque book to raise money how they wish and 'police' our industry however they want, but all this MUST be passed onto our clients, both current and future. What avenues does an adviser have to realistically object to such a phenomenal increase? The price of advice must increase!
Its just a massive squeeze on every single adviser. This is why people are saying you need to turnover at least $500K to stay in the industry per adviser, and that people lioke myself with a small business wont survive. ASIC just does not realise that the licencee does not wear these costs, they are taken directly from the advisers. The advisers either just leave, or only chase the larger clients. Then the pool of advisers shrinks, and ASIC again raises the fees. Its the same ponzi scheme that the insurance providers are now finding is falling over. ASIC dosent realise pretty soon there will be no one left to pay these fees. Cant these fees be based on the amount of business you have ? Its a joke we all pay a flat fee. Like a admin fee for a no service fund. There are businesses such as start ups in this industry, what about us? Sink or swim thats what. Succeed or just give up and make a IP claim, great choices we have.
Of course, they charge fees for no service, and they can do so without Opt In. There is a serious back lash coming against these regulators, and these discussions ARE happening with Federal Cabinet Ministers RIGHT NOW. They get to read this online magazine, each week, don't you worry about that.
I'll just wait for my FDS from them to see.
Oh great. More good news!
as more advisers exit (and there will be plenty) then ALL fees will go up.. you don't need to be a rocket scientist to work that one out
ASIC have recently fined firms like StatePlus and the Banks for fees for No Service, and breaches of AML. Millions made and yet these penalties are not going back into the system to make it easier for those following the law to remain in business.
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