AFA News 6 October 2022. On 28 September 2022, Treasury issued a consultation paper on the ASIC Industry Funding Model Review. This review was a commitment of the former Government, that was made at the same time as the announcement of the ASIC Funding Levy Relief in August 2021.
The consultation paper addresses the key issues that we have previously raised including:
- Design principles and simplicity versus equity
- Allocating significant enforcement costs.
- Incorporating Enforcement costs when the offending entities have left the sector.
- Charging for unlicensed operators.
- Variability of levies and variances between actuals and estimates.
The paper does not propose any substantial solutions and seeks not to consult on some of the issues that are worthy of challenging. We need to take the lead and provide some solutions to fix the issues.
Submissions are due by 28 October 2022, and we encourage members to either make a submission or provide feedback to the AFA, via policy@afa.asn.au.
In August 2021, the former Government provided relief to the financial advice sector for the 2020/21 and 2021/22 years, and as a result, the amount charged to financial advice licensees who provide personal advice to retail clients on relevant products was reduced by approximately $35 million per year. This was a big win for the advice sector and a good outcome on the back of ongoing advocacy. This relief has now concluded and for the 2022/23 year we are back to the normal changing model, so this review is important in seeking a better outcome.
To access the consultation paper please click here.
Please address any feedback on this consultation paper to policy@afa.asn.au.
Issued 06.10.2022. AFA Policy & Education Update
End.
