Personal advice fees cut to help finance sector

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Fees for personal financial advice have climbed sharply after the banking royal commission. They will be cut for two years due to the pandemic, reports swrighteconomy. financialadvice asic auspol bankingroyalcommission

Levies on financial advisers to cover Australian Securities and Investments Commission costs will be slashed by almost $2000 under a federal government plan to take pressure off the sector due to the coronavirus pandemic.

Levies for personal financial advice will be slashed for at least two years to deal with the impact of the pandemic.Mr Frydenberg said the move would reduce levies by $46 million for 2020-21 with a larger saving for this financial year. Apart from the reduction in the levy, Treasury will review ASIC’s industry funding model to look at possible structural changes across the industry after the pandemic and the banking royal commission. That review will start next year.

Total fees collected by ASIC have risen sharply, from $276.7 million in 2018-19 to an estimated $360 million last financial year. Fees covering personal advice have almost trebled to $71.4 million.

 

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swrighteconomy At this point in the climate collapse and neoliberal breakdown, it feels more like a pipe dream to forsee normative market conditions continuing, or maintaining faith in the market.

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