The  Advisers Association (TAA),  a non-profit group that advocates on behalf of AMP Financial Planning, has again pushed for changes to the funding levy model used by the corporate regulator to support its supervision work.

TAA says a “rethink” is needed after the Australian Securities and Investments Commission’s (ASIC) draft  Cost Recovery Implementation Statement for 2020/21  indicates another rise in adviser levy.

“Like others in the industry, we have grave concerns about the ever-increasing financial  burden being imposed  on small business advisers and ultimately their clients,” CEO Neil Macdonald said.

The Association of Financial Advisers and Financial Planning Association  (FPA)  have also hit out at the ASIC cost recovery estimates, saying the projected increase adds to an already growing cost burden for the profession.

FPA says the levy formula needs to be reviewed or more financial planning practices, already struggling under a weight of regulatory reform costs, will be forced to close.

The ASIC draft Cost Recovery Implementation Statement 2020/21 estimates about  $72.246 million in overall levy  will be collected  from the financial advice sector.  Some  $54.281 million will come from cost recovery levies and the other $17.965 million from statutory levies.

“We understand that  ASIC's hands are tied in relation to cost recovery, and we are not opposed  to a user-pays model, however  the users who caused the current regulatory cost burden are not being made to  pay  for it,”  Mr  Macdonald said.

“By exiting advice  the big banks, despite being largely responsible for some of the poorest behaviours, are able to avoid paying.”

TAA  earlier this year  suggested  imposing an exit fee on the major banks and institutions that have  jettisoned  their advice networks or are in the process of doing so.

It says the  exit  fee  may be  calculated as a  three-year multiple of the ASIC adviser levy, per adviser, based on the institution’s adviser numbers, as at the date of the Hayne royal commission report.

“As we said earlier this year, expecting small business advisers and ultimately their clients to keep paying ever-increasing costs for the sins of the past, largely committed by the big end of town, is unconscionable,”  Mr  Macdonald said.