Future of self-licensing remains ‘vibrant’ despite calls for ASIC levy changes

Self- licensed firms will continue to be an important part of the advice sector, despite predictions by the Financial Services Council (FSC) that additional regulatory costs could result in a 15 to 20 per cent reduction in AFSLs, according to Andy Marshall, general manager of Entireti Alliances.

“We continue to see self-licensing, and smaller boutiques, being a vibrant part of the advice spectrum,” he says.

“We’re working with boutiques to enhance their operations, especially in governance and advice delivery, and as a result, we’re seeing growth in the firms we work with.”

The latest FSC white paper on the future of advice licensing calls for greater ASIC supervision of AFSLs, funded by a recalibrated ASIC levy that shifts the financial burden from advisers to licensees. Advisers currently contribute nearly 93 per cent of the ASIC levy with licensees making up the rest.

Proposed changes to the ASIC levy would remove the “easy path to entry for undercapitalised licensees” and make it harder for poorly governed and under-resourced entities to receive a licence, according to the FSC.

While any significant cost increase would be painful for small businesses, Marshall says the outlook for professional, client-centric firms that are investing in their systems, processes and governance remain strong, irrespective of future regulatory changes.

The self-licensed firms at most risk are those that are not focused on delivering excellent advice to clients, he says. Research quoted in the FSC paper shows that, of the nation’s 2443 AFSLs, 577 do not have any registered financial advisers. Such AFSLs do not represent the Entireti Alliances community, Marshall says.

“We see best practice in our AFSL community through investment in governance solutions and in our programs of support that deliver a culture of compliance and a focus on the responsibilities of managing an AFSL and the quality of advice delivered,” he says.

“We remain confident in our ability to grow and service AFSLs who have a desire to invest in process, governance and their own growth.”

In the past year, Entireti Alliances, the licensee services arm of Entireti, has added more than 50 financial advisers, pushing total adviser numbers to 502.

Established in August 2025 through Entireti’s acquisition and merger of IOOF Alliances and Jigsaw Advice Solutions, Entireti Alliances provides a range of solutions, including compliance tools, policy templates, and education and training, to more than 80 AFSLs. 

“It has been a great first year as part of Entireti and our growth has been pleasing,” Marshall says.

“New firms have joined us and many of our longstanding firms are steadily growing and taking up additional services. There is strong interest in our offer and a healthy pipeline of opportunities.”

Marshall says that many self-licensed firms are embracing AI to enhance workflow efficiency and allow more time for deep client engagement and coaching.