The Financial Planning Association of Australia (FPA) welcomes today’s announcement from the Morrison Government on its decision to implement a temporary reduction in cost recovery levies for the next two years and review the ASIC industry funding model charged by the Australian Securities and Investments Commission (ASIC).
“This news will be welcomed by our members and the profession. Today’s news will provide some certainty and stability to financial planners, allowing them to provide more affordable financial advice to Australians. The FPA worked with and would like to thank our members for echoing our concerns about the current formula and their direct engagement with their local members of Parliament over the past 2 years,” said FPA CEO Dante De Gori CFP®.
“This is a significant milestone for the FPA and our members as we have been calling for a review of the flawed model since it was first proposed and then introduced three years ago. We would like to thank the Government for listening to our concerns and those of our members.”
The relief will see ASIC levies charged for personal advice to retail clients restored to their 2018-19 level of $1,142 per adviser for 2020-21 and 2021-22. The flat per licensee charge will remain at $1,500. Treasury will also review the ASIC Industry Funding Model while this temporary relief is in place, to ensure it remains fit for purpose and better reflect the capacity of the financial planning profession. This review will take place in 2022 and will be undertaken in consultation with the Department of Finance and ASIC.
Mr De Gori said he looked forward to continuing conversations with the Government on the industry funding model to improve access to affordable and professional financial advice for Australians.
“Our commitment to helping all financial planners build sustainable and scalable practices over the long term will be achieved through a consistent voice and courageous advocacy and a key part of this is through industry collaboration. This shows the benefit for members being part of the largest and most passionate professional financial planning body in the country,” said Mr De Gori.
“This review will be a critical piece of the puzzle of making financial advice more affordable for all Australians as it starts with making financial planning more affordable to practice.”