AFA News 18 March 2021. Last week we communicated with members on the extreme increase in the ASIC Funding levy for the 2019/20 year and the invoices have now been made available via the ASIC portal. The fee for 2019/20 is $1,500 per licensee plus $2,426 per adviser, and for all licensees who provide life insurance advice, another flat fee of $1,196 for Insurance Product Distributors.

In the message last week, we encouraged our members to contact their local member to object to the scale of the increase and to seek relief.  Members have asked for assistance in framing this message.  We always encourage advisers, when contacting their local member of Parliament, to personalise the message, talking about your business and the role you play in the local community.  Some key points that you might like to make include:

• I am a small business financial adviser in your electorate, and we employ X staff. We support YYY clients, most of whom are also likely to be in your electorate.
• My clients place great reliance upon the services that I provide and have greatly appreciated my support through the COVID 19 crisis. <<talk to your value>>
• I am writing to you to express my objection to the scale of the increase in the ASIC Funding levy for the 2019/20 year, which ASIC recently announced.
• The cost per financial adviser has increased from $1,142 for the 2018/19 year to $2,426 in the 2019/20 year. This is an increase of over 110% in just one year.
• This increase from a Government body, is happening in the middle of the COVID 19 crisis and at the same time as a range of other regulatory related cost increases. The costs to operate my business have increased by XX% in the last two years.  This has put a lot of pressure on my business and myself personally.
• I understand that this increase is driven by enforcement action against the Big banks and other large institutions flowing from the Royal Commission. The big banks have all exited financial advice or are in the process of getting out and have left us small businesses to pick up these costs, that they have caused.
• I understand that any penalties that flow from successful prosecution against them will flow to consolidated revenue, and not back to offsetting these fees.
• I don’t agree that we should be paying for enforcement action against large institutions, where the costs can be recovered from the other party, although delayed for a few years.
• I am asking you to raise this issue with the Treasurer and request that the ASIC Funding Levy for financial advisers for the 2019/20 year be capped at the 2018/19 level of $1,142. I am also asking for a more equitable methodology to be used in the future.

Please use this as a chance to introduce yourself to your local member and/or state Senator (if you have not already done so). By presenting a message about your role in the community and through a measured framing of your message, you can seek to build that relationship and influence this and other important outcomes.

Please contact policy@afa.asn.au if you have any questions.

Issued 18.03.2021. AFA Policy & Education Update