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.