The bulk of the additional levy is directed towards the funding of the Compensation Scheme of Last Resort (CSLR), a mechanism aimed to ensure consumers receive compensation owed by financial firms that have failed. Additionally, costs related to the adviser exam and the creation of a single disciplinary body for advisors add to the financial burden.
Further driving up costs is ASIC’s oversight activities regarding choice superannuation products. This has raised eyebrows within the financial advisory community as to why advisers should bear this specific administrative cost, which arguably involves superannuation funds as a key component of the equation.
ASIC has broken down these costs, itemizing the components being billed to advisors. This includes:
Moreover, financial advisers will share additional regulatory costs with other financial advice sub-sectors. These costs encompass several areas including ASIC’s cyber resilience initiatives, breach reporting mechanisms, the employment of artificial intelligence, dispute resolution processes, penalties for the non-lodgement of financial reports, enforcement against unlicensed financial advice, and restrictions on cold-calling for superannuation switching.
Critics argue that the levy structure places an undue financial load on advisers for areas where other stakeholders, such as superannuation funds and accountants, significantly contribute and should possibly share responsibility. For example, the costs associated with SMSF establishment advice compliance are shared more equitably between accountants and advisers, reflecting their respective roles.
On a positive note, costs associated with combating unlicensed financial advice and cold-calling superannuation switching will be distributed across all financial advisory sub-sectors rather than being shouldered solely by individual advisers.
Financial advisers looking to understand the reasoning behind their increased ASIC levy can refer to the detailed breakdown provided by ASIC. According to ASIC's figures, the overall regulation cost for the financial advice sector for 2022-23 sat at $47.6 million, which is poised to rise to $48.4 million in 2023-24.
The need for these measures, while increasing costs in the short term, is part of an effort to create a more robust and fairer financial advisory industry, aiming to benefit consumers and professionals alike by ensuring higher standards and better protection mechanisms.
Source: ASIC Bulletin
Published:Wednesday, 10th Jul 2024
Source: Paige Estritori
| Australian Insurers Adapt Investment Strategies in Response to Geopolitical Shifts 07 Mar 2026: Paige Estritori Australian insurers are actively revising their investment portfolios in response to evolving geopolitical events and economic conditions. According to the 2025 Australian Insurance Report by Janus Henderson Investors, 47% of insurers plan to increase their investment portfolio risk over the next 12 months, with a significant focus on private markets. - read more |
| Rising Insurance Premiums: What Australian Beauticians Need to Know 07 Mar 2026: Paige Estritori Recent industry reports indicate that Australian insurers are facing significant challenges due to escalating claims costs and broader economic pressures. This trend is leading to adjustments in premium rates, which could have direct implications for beauty salon owners and professionals. - read more |
| How AI is Transforming Investment Strategies in Australia's Insurance Sector 07 Mar 2026: Paige Estritori The Australian insurance industry is increasingly turning to artificial intelligence (AI) to refine investment strategies and enhance portfolio performance. A recent report by Janus Henderson Investors reveals that nearly half of Australian insurers plan to increase their investment portfolio risk over the next year, with AI playing a pivotal role in this shift. - read more |
| What Beauticians Can Expect from the Upcoming Insurance News Outlook 2026 Conference 07 Mar 2026: Paige Estritori The Insurance News Outlook 2026 conference, scheduled for March 19 in Sydney, is set to delve into the evolving landscape of claims trends and the accelerating influence of technology within the insurance industry. This event presents a valuable opportunity for beauty salon owners and professionals to gain insights into developments that could impact their insurance coverage and claims processes. - read more |
| The Savvy Consumer’s Guide to Purchasing Life Insurance in Australia As the landscape of finance and personal security evolves in Australia, the importance of being insured has never been more prominent. In a world of changing family dynamics, economic pressures, and higher living costs, life insurance stands as a bastion of support ensuring the well-being of loved ones in the event of unforeseen circumstances. The advent of the digital age has significantly shifted the manner in which Australians can shop for and secure life insurance from the comfort of their homes, offering tailored solutions with just a few clicks. - read more
|
| Life After You: Planning Ahead With Quality Life Insurance for Your Family Life insurance is a fundamental component of a robust financial plan, yet its significance is often underestimated. It serves as a safety net, ensuring that your loved ones are financially secure in the event of your absence. Understanding life insurance is the first step towards safeguarding your family’s future. - read more
|
| Common Mistakes to Avoid When Comparing Life Insurance Policies Choosing the right life insurance policy is one of the most important decisions for Australians, especially for those who are middle-aged or older. Life insurance provides financial security for your loved ones in the event of your passing, ensuring that they are not burdened with financial hardships. - read more
|
| Why Every Tradie Needs Tailored Insurance: Protecting Your Livelihood In Australia, tradies are the backbone of many local communities, providing essential services in fields such as construction, plumbing, electrical work, and more. These skilled professionals often operate their own businesses or work as contractors, making financial stability paramount. - read more
|