Australia’s financial advice companies will pay levies totalling nearly $28 million under the latest funding regime outlined by the Australian Securities and Investments Commission (ASIC), with a portion of that money being directed towards the money the regulator will use to pursue a tougher litigation approach.
The costs are outlined in ASIC’s latest Cost Recover Implementation Statement, which reveals that financial advice firms will pay $24.226 million in cost recovery levies plus $3.728 million statutory industry levies.
However, this sits well behind companies operating in the investment management, superannuation and related services sectors, which will pay $43.621 million in cost recovery levies, plus $15.503 million in in statutory industry levies.
The increased levies are being imposed despite Budget funding increases for the regulator already announced ahead of tomorrow night’s Federal Budget.
The Treasurer, Josh Frydenberg announced late last month that the Government would be providing more than $550 million in the 2019-20 Budget to help restore trust in Australia’s financial sector, with ASIC to be provided with more than $400 million in additional funding, representing on average a 25 per cent increase in its annual funding over last financial year.
He said APRA would be provided with more than $150 million in additional funding, representing on average a 30 per cent increase in its annual funding.
Comments
An investigation into ASIC is required. They appear conflicted in political affiliations and their cultural leanings, but also allow media driven sentiment and public perception to affect their prosecution and investigation decisions. Despite the transparency they expect of businesses and professions in their jurisdiction, they display none themselves and appear to arrogantly dismiss any request for information.
Before any levy is increased, they should have to submit to a higher authority exactly what where and how any extra revenue will be used.
When you have a legislated captured market of 'clients' and it is a authoritarian monopoly, it is easy to simply rort those under you to a point where, if it is your ultimate goal, you force a number out of the industry altogether.
MORE money so that when it comes to enforcement in the banking sector they can do MORE of nothing. It's like being pulled over by the police for speeding and the Officer saying "Hey Mr Banker we caught you on the radar doing 145 klm in the 100 zone... You better slow down or you could get fined $1.45. Well you all Have a nice day now.".
Whilst if you're an independant adviser they'd take you back to the Station and 10 officers would beat you half to death. Yeah more money is the solution. i.e there are the resources, the equipment but as far as doing something that's another story.
Lucky ASIC separated themselves from the Public Service, and can now pay themselves what ever they like. They wont need to rely so much on Bank gifts, and fancy dinners.
They are making plenty of money - oops, paying themselves well.
Is anyone interested in forming a body of advisers that would be interested in coming together aimed at reducing Government regulation and all these Government levies. The new group could represent us to Treasury, and help lift confidence in the sector. We'd commit to a code of ethics and the body would just represent Planners and Australians. We could call it some type of Financial Adviser Association or something along those words. It would be a first for Australia. I guess they'd be a risk of it being taken over by product providers and bribery payments but we'd stamp that out...hopefully. The Accountants have a similar group called CPA Australia as do Doctors. Any thoughts ?
ASIC are corrupt as mentioned in above comments. If the Lib's do a Lazarus and get re-elected, it is our professional duty to get a ground swell for an investigation into this non-public service group.
The Mortgage Brokers within a short period of time gained enough public support to quell the nonsense from Haynes, clearly FPA and AFA are hopelessly inadequate, so we need to organise this ourselves post election assuming the Commies don't get in.
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