The Federal Treasury has delivered a nebulous answer to direct Parliamentary Committee questioning over the future funding of the Financial Adviser Standards and Ethics Authority (FASEA).
Specifically asked by South Australian Labor Senator, Alex Gallacher about establishing a permanent funding model for FASEA, the Treasury provided a non-specific answer.
It stated: “FASEA’s long-term funding is a matter for Government” adding that Treasury was providing ongoing advice to the Government on both that and a range of other FASEA-related issues.
FASEA is currently funded under a model entailing a levy imposed on the major banks with the FASEA annual report noting that the organisation currently receives industry funding of $3.9 million a year under a contract which is scheduled to expire on 30 June, 2021.
However, industry attention has turned to the future funding arrangements for FASEA in circumstances where a majority of the banks have now substantially exited their wealth management businesses, particularly Westpac and ANZ.
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Yep - that'll be the end of FASEA or else the remaining advisers will have to dig deeper to fund the very organisation which caused so many to leave. FASEA is like the bushfire of financial services! Comes up like a firestorm engulfing all in it's path, causes devastation and destruction, is controlled by the government and eventually extinguished to be a memory blight on the financial services landscape. And everyone left behind after the disaster is made to pay for it.
Just paid $550 to TPB for "supervision". Happy to keep paying another $1,000 to FASEA for their work, and $3,000 to the code monitoring body for "supervision", and ASIC for "supervision" and Kaplan for "education" and SURA for insurance, and AFCA for "dispute resolution", and my AFSL becuase they also need paying. Can't understand why anyone would possibly think Australia has a competitive attitude to business.
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