Advice industry participants have unified in opposition to a significant increase in the annual adviser levy, and questioned the efficacy of an industry funding model that penalises compliant advisers for breaches committed by those that have left the industry.
The latest adviser levy for FY19/20 came in at $1500 per licensee plus $2,426 per adviser, with the adviser portion increasing from $1,142 in FY18/19 and $934 in FY17/18.
That’s an increase of 160 per cent in two years for an adviser cohort already struggling with the cost to serve.
This increase is also being concentrated across advisers providing retail advice; wholesale advisers have a separate levy, which this year sits at $29 per adviser.
âFocus on cowboys, not complianceâ, new-look ASIC urged
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Top corporate lawyers and advisers to the financial services industry are hoping James Shiptonâs replacement as ASIC chairman will bring a focus on red-tape reduction and healthy respect for business to the job.
Treasurer Josh Frydenberg announced on Friday that Mr Shipton would leave the corporate regulator once a replacement is found, despite an independent report into an expenses scandal finding no wrongdoing on his part.
Businesses say they are struggling under mountains of regulatory red tape.Â
Illustration: Michael Mucci
His exit will follow that of barrister and deputy chairman Daniel Crennan, QC, who was also cleared of any wrongdoing over relocation expenses, but resigned in October.