Advisers already face 15%+ CSLR levy increases | Australian Markets

The Treasury session across the Compensation Scheme of Last Resort (CSLR) exceeding the financial planning sub-sector levy cap closed on Friday at a lot the identical time advice licensees had been being instructed their levies are “ready for payment”.

And licensees found by logging on to the CSLR portal supplied by the Australian Securities and Investments Commission (ASIC) that their levies had generally gone up by at the very least 15% to 17%.

Reaching out to Financial Newswire, advice licensees complained that over the identical 12 months period Australia client price index had risen by simply to 2.1%, that means that the CSLR levies had risen by an order of about 7.3 instances the CPI.

The Treasury session paper has thrown up a quantity of choices and situations for addressing the $47 million price over-run for the financial advice sub-sector, with a vital quantity of stakeholder responses arguing strongly towards the minister imposing a single sub-sector particular levy.

Instead, most responses seen by Financial Newswire help the minister spreading the fee of the particular levy throughout all sub-sector whereas arguing that the one actual reply lies in a complete rewrite of the CSLR funding mechanism to incorporate product producers and managed investment schemes particularly.

The responses have additionally pointed to submissions already made by stakeholders to the Treasury post-implementation review of the CSLR the session for which kicked off in late January and completed in early February however has nonetheless but to report.

The key factor within the phrases of reference for the post-implementation review has been “how the CSLR funding model is formulated, including its potential impacts on businesses who fund the industry levy”.

The backside line of most public responses to the post-implementation review has been that the present financial adviser population isn’t ample to fund the scheme because it presently exists and that managed investment schemes have to be made to tug their weight.

The Financial Advice Association of Australia (FAAA) has persistently argued for an extension of the scope of the CSLR to cowl Managed Investment Schemes.