Both associations representing financial advisers have expressed concerns about the Federal Government’s move to cut funding to the Australian Securities and Investments Commission (ASIC).

The Government plans to reduce ASIC’s spending by $120 million over a five-year period.

Association of Financial Advisers CEO Brad Fox says the reduction in ASIC’s budget could impact the advice industry.

“As financial advice continues its progression towards becoming a universally recognised profession, the opportunity for greater self-regulation will increase,” he said.

“Reduced funding for ASIC, as the regulator of financial advice, may provide further impetus to bring self-regulation forward.”

Financial Planning Association GM Policy and Conduct Dante De Gori says the organisation will be paying close attention to the funding cuts.

“In particular we will be keeping a watch for any adverse effect in terms of licensing costs for financial advisers,” he said.

“We will also seek to ensure no impact on ASIC’s services and capacity to monitor and supervise the industry.”

Another concern is the impact of the Budget on middle-income families and the impact on life insurance.

“These families will have less disposable income and this may affect their ability to afford vital personal insurance,” he said.