FSC welcomes ASIC levy freeze for financial advice

THE Financial Services Council (FSC) has welcomed the Federal Government’s recent decision to provide temporary and targeted relief to financial advisers, by reducing the cost recovery levies charged by ASIC.

FSC CEO Sally Loane said, “We are pleased the government has recognised the cost pressures on the financial advice sector. The temporary relief will give the 19,000 advisers in the sector hope the government understands the challenges facing the financial advice industry and will take further action to reduce the costs of regulatory burden on advisers.

“The FSC’s Green Paper Affordable and Accessible Advice noted advice licensees are facing significant regulatory costs that are resulting in advisers leaving the industry. Financial advice has been subject to a 'Gordian knot' of prescriptive and overlapping compliance, which has significantly added to their cost of doing business and made advice more expensive for Australians,” Ms Loane said. "Advisers need the opportunity to spend more time with their clients, particularly as we try to recover from the pandemic

“The FSC also welcomes the government’s announcement that it will review ASIC’s Industry Funding Model while this relief is in place to ensure that it remains fit for purpose.”

As the industry collaborates on ways the cost of financial advice can be reduced, the announcement gives hope of more substantive deregulation following the Government’s Review of the Quality of Financial Advice post 2022. Reforms to reduce the cost of advice have been proposed in the FSC’s Green Paper and soon to be released White Paper on Financial Advice.

www.fsc.org.au

 

ends