Based on updated figures, the ASIC adviser levy will be $400 lower per adviser than previously anticipated.
The Financial Advice Association announced on Thursday the ASIC levy for FY23 will be $2818 per adviser, along with $1500 per licence. It said the estimate was based on revised figures for the financial year, which has been confirmed by a spokesperson from ASIC by Professional Planner.
Blowouts to the ASIC levy led to the former Coalition government freezing the fee in 2021 after the attrition of thousands of advisers from the industry meant a smaller pool was left to fund the regulator’s policing of the sector.
In 2021, ASIC initially estimated advisers would need to pay a flat fee of $1500 per licence plus a graduated component of $3138 per adviser, which was more than triple the original $934 fee in FY18.
The freeze meant advisers would pay the flat fee plus $1142 per adviser, keeping the rate in line with 2019 figures, when the industry had circa-28,000 advisers.
A new levy figure was due to be announced upon completion of the review of the industry funding model and the current Labor government announced an end to the levy freeze.
The advice sector was expecting to pay $1500 per licence plus a graduated component of $3217 per adviser.
FAAA chief executive Sarah Abood said the association doubted the $55.5 million figure ASIC stated it required for cost recovery for the sector.
“The FAAA challenged this number and the underlying methodology used to arrive at it, as well as the lack of transparency in the calculations,” Abood said in a media release on Thursday.
“In these final numbers, the total cost for our sector has reduced by nearly $8 million to $47.6 million. We have consistently and strongly advocated for relief for advisers on the ASIC levy, and we are glad to see that the government has listened to those calls.”
The levy covers enforcement of licensed and unlicensed advisers, with Treasury justifying the industry benefitted from policing unlicensed advice.
However, Abood said the association remains concerned about the size of the levy, as well as the lack of transparency around its calculation.
“We will continue to work with ASIC, Treasury and the minister’s office to support and encourage further changes including the implementation of the improvements to the industry funding model that were recommended by Treasury in its recent review,” Abood said.
While Minister for Financial Services Stephen Jones has been pushed on giving advisers relief for the levy he had stated in July he was focused on bigger priorities in the industry like the Quality of Advice Review reforms.
