Advisers are on the brink of swapping out lengthy statements of advice (SoAs) for shorter records of advice (RoAs) in more scenarios if recent signals from the regulator are consistent with their intentions.
On Monday ASIC provided high-level takeaways from its consultation on advice access (CP 322) to the government, with the two-page document headlined by the finding that advisers want to use more RoAs yet remained constrained by regulatory and licensee restrictions.
“SOAs are a clear cost barrier to providing limited advice,” ASIC stated after trawling through the 469 submissions it received – 244 from financial advisers.
“Respondents have raised that Government should reconsider the SoA requirements and expand the situations when an RoA is permissible instead of an SoA.”
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.
BNPL Fintech Limepay Goes on Hiring Spree After Securing $21M in Capital with 7 Senior Appointments
February 5, 2021 @ 9:13 pm By Omar Faridi
Limepay, a Buy Now Pay Later (BNPL) provider, says it has gone on a “hiring spree” after securing $21 million in capital, with 7 senior hires according to a release shared with CI.
Limepay claims that it’s Australia’s “only” enterprise payments and white-label BNPL and it plans to “beef up” its team with several high-level appointments ahead of a potential ASX listing during H2 2021. Notably, this announcement has come after its pre-IPO raise amid 2020’s Christmas rush and its recent partnership with Domain (ASX: DHG).
Limepay adds seven new senior hires as gears up for IPO
Limepay co-founder and chief Tim Dwyer and chief revenue officer Dan Peters. Source: supplied.
Buy-now-pay-later fintech Limepay is progressing on its way to listing on the Australian Securities Exchange by using some of the almost $30 million it has raised over the past 12 months to add a series of high-profile hires to its team.
Limepay offers businesses a white-label payments platform, including buy-now-pay-later (BNPL) functionality, that can be fully integrated with their brands.
The startup closed a $21 million pre-IPO funding round in December, adding to a $6 million raise in May 2020, and is eyeing off an ASX listing in the second half of the year.
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.