What is the ASIC levy funding?

The six areas the corporate watchdog focused on during 2020-21 with its levy were unlicensed advice, COVID-19 advice-related relief surveillance, the financial services Royal Commission recommendations, unmet advice needs, life risk insurance review, and ending grandfathered commissions.

The Australian Securities and Investments Commission (ASIC) released its estimated levies on industries that would see licensees providing personal advice to retail clients on relevant financial products pay a minimum levy of $1,500 plus $3,318 for every financial adviser. This was an increase of $712 from the previous financial year.

During FY 2019-20, ASIC said its cost of regulating the financial advice sector was $59.59 million. In FY 2020-21, this increased by $16.5 million to $76.13 million.

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“In 2020–21, we will focus on the conduct and practices of licensees in this subsector to identify real and potential harms that threaten good investor and consumer outcomes, particularly in the context of the COVID-19 pandemic,” ASIC said.

“We remain committed to implementing the recommendations of the Financial Services Royal Commission, including our work in relation to progressing enforcement matters arising from the Royal Commission.

“We will take enforcement or other regulatory action where we identify a breach of the law.

“As requested by the Australian Government, we will continue to examine the effectiveness of the LIF [Life Insurance Framework] reforms in better aligning the interests of financial advisers and consumers.

“We are conducting a review of personal life insurance advice from before and after the LIF reforms were phased in. The results will show whether the quality of life insurance advice has improved. We will continue collecting aggregate level data from life insurers every six months to observe industry trends across the same period.”

ASIC noted that while it would report its LIF review findings to Treasury, it would not release a public report.

“We will continue to monitor advice compliance across financial advice firms, including banning non-compliant advisers or taking other regulatory action where appropriate. We will also monitor firms’ remediation programs for non-compliant advice identified,” it said.

On insurance product distributors, ASIC said it focused on protecting consumers from harm during a time of heightened vulnerability as a result of the COVID-19 pandemic during FY 2020-21.

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How can ASIC charge licensed advisers fees for their activities in unlicensed advice? Fees for no service! And how can they get away with keeping the life insurance review secret? The review was a key part of the royal commission recommendations. It MUST be made public. I will tell you why ASIC is doing this - their last review was as dodgy as hell. They got away with their unfair, biased and defamatory report last time, but the next report will be scrutinised much more critically with financial advice and life insurance in a death spiral. So what do ASIC do? Bury the report. Typical. ASIC are a disgrace.

ASIC is corrupt.

No LIF report made public = STITCH UP FOR SURE yet again by corrupt ASIC.
No monitoring Accountants and bucket loads of Illegal AFSL Advice as they have told ASIC to get stuffed on limited AFSLs.
No monitoring Unlicensed Advisers.
No monitoring FinFluencers.
Just keep killing Real Advisers to the detriment of clients.
ASIC is totally out of control, corrupt and a disservice to public.

ASIC has run all sorts of legal cases on the advisers dime, collected penalties and passed it all to consolidated revenue without offseting the legal costs. Demand more from your local members and refuse to fund either party

Paul, worse than sending to consolidated rev, they also have 'donated' it to anti-planner 'community' or 'consumer' groups like CHOICE etc, actively funding those who very publicly cry for our demise.

Correct JB.


How can ASIC's costs of running the business increase by over 27% when for 1/4 of the FY19/20 period the country was in a COVID induced coma and ASIC basically shut down all it's consultation and other work to "assist" with the COVID response? ASIC postponed all non-essential work between March 2020 - October 2020, a period of 8 months. Are they that inefficient?

could we all just collectively refuse to pay this, until they justify why WE are paying for everyone elses mistakes?

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