FPA requests ASIC levy freeze extension and fairer cost structure

The Financial Planning Association of Australia (FPA) has formally requested an urgent continuation of the freeze on the ASIC industry levy. The current freeze, which has kept fees at the 2018-19 level of AUD 1,142 per adviser, is set to expire, potentially leading to significant cost increases for financial planners.

FPA CEO Sarah Abood stated that making financial advice more affordable for all Australians begins with making financial planning more affordable to practice. She highlighted that the current levy model funds activities unrelated to financial planners, necessitating government intervention twice in the past five years.

The FPA also proposed that the six large licensees at the time of review (AMP, Macquarie, ANZ, CBA, NAB, and Westpac) should be charged separately for the costs associated with ASIC's oversight of their remediation programs and litigation. The association questioned whether litigation and investigation costs are intended to be recovered through the general industry levy.

As ASIC's funding model undergoes a Treasury-led review, the FPA urges that the profession's capacity to pay is considered. They advocate for excluding costs from litigation and investigations from the levy until proceedings are complete, thereby preventing undue upward pressure on fees for planners not involved in such activities.