The financial advice industry has expressed anger over the corporate regulator’s plan to collect more levies from them to fund its supervision of the sector.

Five of the biggest industry associations say the fee hike, coming at a time when advisers are quitting the profession because of prohibitive operating expenses, is “shameful” and want a review of the funding model for the Australian Securities and Investments Commission (ASIC).

The five associations slamming the fee hike are Chartered Accountants Australia and New Zealand, CPA Australia, Financial Planning Association, Institute of Public Accountants and SMSF Association.

Last week ASIC released its 2019/20 Cost Recovery Implementation Statement, outlining what it expects to collect in levies from the various industries. It estimates the financial advice sector will pay $29.85 million in cost recovery levies and $7.549 million in statutory levies for the work ASIC has undertaken in the last financial year.

Licensees that provide personal advice to retail clients have been set an indicative levy of $1500 plus $1571 per adviser.

“The fee hike… represents an increase of 160% over two years for financial advisers,” the five industry associations say in a joint statement. “Meanwhile, the number of financial advisers has fallen from around 25,200 in 2017/18 to approximately 21,200 now.

“Declining adviser numbers mean that remaining participants must shoulder a heavier proportion of the total cost.

“This is impacting the viability of remaining businesses. Ultimately, this has flow on-effects for competition and the accessibility and affordability of financial advice.”

Click here for the ASIC cost recovery report.