Advisers hit with $1500 levy

ASIC has introduced a $1500 fixed levy on authorised financial advice licensees to cover the price tag of its costs recovery framework.

The graduated levy for licensees comes off the back of the ASIC Supervisory Cost Recovery Levy Bill, a law which enabled the regulator to recoup costs from the industries it supervises.

As of April 2015, about 22,000 financial advisers were registered on the ASIC and MoneySmart financial advisers register.

For securities dealers, large securities exchange participants and large futures exchange participants, the graduated component will exclude financial advisers who only provide advice on quoted products, products traded on a foreign financial market or basic banking products.

Commenting on the new cost recovery framework, ASIC chairman Greg Medcraft said: "We are pleased to be able to confirm the framework to help industry prepare for this new regime and thank industry members for their contribution."

"ASIC will continue to support industry to comply with their obligations as they become due," he said.

Other financial services sectors including superannuation trustees, insurers, and responsible entities will also share the costs of regulatory services based on the number of regulated entities in a sector and, in most cases, information provided by regulated entities via ASIC's new online portal.

Report highlights per sector include:

  • Financial advice sector: A fixed levy of $1500 for licensees authorised to provide advice on relevant products.
  • Superannuation trustees: The graduated component of the levy will be based on the total value of assets as at 30 June in registrable superannuation entities, excluding assets that are an interest in another registrable superannuation entity operated by the trustee.
  • Insurance sector: The definition of insurance product issuers has been expanded to include Australian financial services licensees who make offers to arrange for the issue of insurance products under an intermediary authorisation with an APRA-regulated insurer that does not hold a licence.
  • Responsible entities: The graduated component of the levy will be based on the total value of assets as at 30 June in registered schemes, excluding assets that are an interest in another registered scheme operated by the responsible entity.
Further details will be provided in a Cost Recovery Implementation Statement later this year.

Read more: ASICLevyAdvisersSuperannuationCosts recovery frameworkfinancial advisers registerGreg MedcraftMoneySmartSupervisory Cost Recovery Levy Bill
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