ASIC affordable advice project on hold due to SDB

The Australian Securities and Investments Commission’s (ASIC’s) CP 332 ‘Promoting access to affordable advice for consumers’ project has been put on hold as issues over funding the single disciplinary body (SDB) meant ASIC is unsure what it can commit to either project.

The project was announced last year and ASIC published feedback from the responses in July, which included criticisms statement of advice (SoA) preparation, rising regulatory costs and governance costs pushing up the cost of advice for consumers.

Coalition MP Bert van Manen of the Corporations and Financial Services committee asked ASIC Commissioner, Danielle Press, about where CP 332 was headed.

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“There was a lack of detailed information about what direction that has now provided to ASIC,” van Manen said.

Press said it was currently with Treasury but that the project would be put on hold due to costing of the SDB.

“With respect to where the publication is at, we have provided all the information to Treasury now,” Press said.

“There review is coming through, so the submissions have been provided to Treasury; we had done a number of round tables.

“Out of that there has been some project work we have started or are scoping around how we can better engage with industry.

“However, some of that will now be put on hold due to the SDB and some of the issues with the costing to the industry.”

Press did not specify what parts of the CP 332 project would be on hold or would continue, but she said the SDB was a piece of work that would need to be undertaken once the legislation was fully formed and the cost of that would be funded from industry through the ASIC levy.

“If the levy is staying the same, there is work we need to do, by law, to the SDB that will need to be funded out of the envelope that we apply advisers,” Press said.

“If we are trying to keep that envelope unchanged then that means there are other pieces of work we cannot do.”

Press said she was unable to comment yet on what that SDB work would cost.

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ok so focus on the SDB, the punitive one, but not on easing costs to serve, using all sorts of managerial speak, excellent.

The SDB is a "single disciplinary body" in name only. It is far from a single disciplinary body as long as advisers are still compulsorily subject to AFCA, AUSTRAC, licensees, and the non FSCP parts of ASIC.

Money Management, please always refer to it as the "so called Single Disciplinary Body" to emphasise the fact that it is a deceptive name, which is not reflective of its function.

Not surprising really. ASIC told the royal commission consumers don't need financial advice, so why would they want to make it affordable? The regulator is completely broken, and has been for a long time. For Hume to give them the task of conducting the review and overseeing the SDB shows she is completely out of touch.

It’s not on hold due to the SDB and kept secret.

It’s maybe ASIC has finally realised they are the problem.

If the government was serious about reducing red tape and the rising cost of financial advice they would ask who has had the biggest impact outside of the government themselves. It's obvious ASIC is the main culprit. Here again is another example where important work needs to be done urgently to fix a problem and ASIC is full of excuses why they have not delivered. Why does ASIC get some many opportunities when they keep showing they aren't up to the job.

Oh shock me, probably started to realise how much damage they've done and thrown this in the too hard basket.

Imagine how good it would be to just choose to not do your job and still get paid.

i wanna be an asic public servant.

CFP, I thought you had higher respect for yourself. LOL

it's a joke, I'd rather poke myself in the eye with a needle than be a public servant.

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