The bad news has arrived. At the same time as financial advisers have been urged to directly lobby the Treasurer, Josh Frydenberg, for a review and reduction in the Australian Securities and Investments Commission (ASIC) levy, those same advisers have been receiving their levy invoices from the regulator.
What is more, the invoice documentation leaves those advisers in no doubt about the cost of failing to pay the levy, declaring that not only would they be hit with a sizeable interest bill but, ultimately, may find themselves deregistered.
The ASIC invoice documentation states:
1. Late payment penalty interest will be charged at the rate of 20% pa each month the levy remains unpaid;
2. We may refer details of your unpaid debt to credit reporting bureaus;
3. We may take legal action if you still do not pay;
4. We may deregister your company and/or cancel your licence for non-payment after 12 months.
The receipt of the invoices has come at the same time as the Association of Financial Advisers (AFA) has suggested to members that they directly lobby the Treasurer, Josh Frydenberg, as the minister most responsible for the levy rises.
Explaining the levy calculation within the invoice documentation, ASIC said: “During the July to September period you may have provided us with your business activity metrics via the ASIC Regulatory Portal. Where you have not provided this information via the portal, we have calculated your levy based on the metrics we have available”.
Comments
Lodge a complaint against ASIC as to the inequitable method of calculation with the financial ombudsman here:
https://forms.business.gov.au/smartforms/servlet/SmartForm.html?formCode...
ADVISERS PLEASE DO NOT PAY !!!
We All need to say Enough is Enough.
Let ASIC and Frydenberg try to close down the whole industry down.
If Advisers All refuse to pay, will the Govt really shut down the Advice Industry. No they may actually start listening, of which they have Not started listening yet.
REVOLT AND DO NOT PAY !!!!
At least a few advisers would pay so this won't work. But ASIC closing down industry down could happen. They would need to shed a few staff though, advisers keep ASIC very busy.
Thanks Master Shipton, aren’t you already leaving ?
Just calculating your golden parachute $$$$$ millions to go along with your $128,000 Adviser funded personal tax Advice. Gee we are so happy to have had your services. NOT !!
Like the Vertically owned Industry Fund Advosers, that are paid via hidden commissions, to provide Conflicted Advice only to retain FUM or Rollover FUM to their own Industry Super Fund, with no need to follow BID, no FARSEA, no Full Fact Finds and no heat from their best buddies ASIC.
If Real Advisers had such a run, we would happily pay too.
Wow, 20% per month. Didn't realise the government was moonlighting as a loan shark, or payday lender with stand over tactics to go with it!
As if the relationship between ASIC and the advice community could not be more toxic. They thieve from us and in the same document threaten us with extreme measures. So much for wanting to have a good relationship. They lack transparency, provide us no service for this legalised theft, miss the real bad people (such as Melissa Caddick) and think it's okay to hit the rest of us up for sins of institutions that are no longer in business! ASIC is an institution that is not fit for purpose. For all their PR about being nice guys wanting to have a great outcome, they show no understanding of being at the coalface with clients and want to regulate with outcome as if everyone wants vanilla.The more they try to regulate the more confusing and expensive it is. The more insurers put up PI premiums. The more expensive advice becomes. The more conservative dealer groups will become. Less Australians will get advice. And so on and so on and so on.....
So after:
Mandatory industry association membership fee: $600 - 850
TPB Membership renewal fee: $600
Mandatory FASEA exam: $600
Mandated Graduate Diploma Bridging course fees: $1,500 - $2,000 (per 12 week unit)
Financial Planning Software fees: $5,300 p/a
Licensee Compliance Fees:?...and increasing
+ now ASIC "recoverables" levy of $4K?...and rising??....with the threats of deregistration???
what is the point of it all, in attempting to meet the educational standards, compliance regime, etc...if many will be facing being struck off the ASIC register, and more, within 12 months?
What about the clients in all this?..are, or will industry funds, and the banks, be the heroes, to save the day...or will ASIC "DIY" - do it themselves?
What a great enticement to recruit new advisers into this farcical industry!!!
Imagine if an Adviser threatened these terms on a fee for service contract. I am sure it wouldn't fly in the eyes of the regulator and AFCA. But hey, we are Advisers, so gives a sh*t hey!
20% per month. That's 240% per year. WTF??? And ASIC call the "payday" companies "vultures". More like fee for no service. This is INSANE, not to mention EXTORTION!! Under the ACCC, this conduct would be defined as "misuse of market power". It is a DISGRACE!!
Bruce, 20% compounded over 12 months is 891% annual percent. Even Tesla and bitcoin can't do that.
It's 20% P/A. If your levy was 100 and you didn't pay you'd be charged $20 spread over 12 months not $20 each month.
Absolutely disgusting by ASIC and they talk about affordable advice? Why would any young person want a career in this industry, This industry is absolutely [email protected]!
makes the buy now pay later sector look like angels
LEECHES, the worst parasites.
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