Financial advisers have questioned the Australian Securities and Investments Commission’s (ASIC) estimates of cost recovery levies for this financial year, warning they may have to pass on the increases to consumers. 

The ASIC 2022/23 Cost Recovery Implementation Statement (CRIS) estimates it will collect about $3217 per adviser for regulating the sector this financial year. In 2021/22 the sector paid $1142 per adviser. 

“When the levy was originally frozen, at $1142 per adviser, the profession had substantially more participants than it does now,” Financial Advice Association Australia CEO Sarah Abood said. 

“The increase for this financial year…  almost triples the costs. Advisers will be forced to pass the cost increase on to consumers at a time when we are all working hard to make financial advice more affordable.” 

Levy fees have been frozen at 2018/19 levels under a two-year relief scheme introduced by the previous Coalition Government. The relief applied to financial years 2020/21 and 2021/22. 

Financial Services Minister Stephen Jones said last week the temporary levy relief will not be extended further. 

Ms Abood says the levy freeze was achieved as a result of strong advocacy on the need for “fairness and equity” in the way the levy is calculated. 

“We are extremely concerned to see the impact of the end of the freeze on the ASIC levy resulting in an almost tripling of the per-adviser cost,” she said. 

ASIC estimates the cost of regulating the sector in 2022/23 at $55.5 million. In 2021/22 it was $56.7 million. 

Final levies will be published in December and invoiced between January and March next year. 

Click here for the CRIS on financial advice sector.