The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Financial advisers in Australia are finding themselves under increased financial pressure as the Australian Securities and Investments Commission (ASIC) seeks to raise additional funds through heightened levies for the 2023-24 fiscal year.
A substantial part of this increase is attributed to the establishment of new regulatory frameworks and compliance measures.
The bulk of the additional levy is directed towards the funding of the Compensation Scheme of Last Resort (CSLR), a mechanism aimed to ensure consumers receive compensation owed by financial firms that have failed. Additionally, costs related to the adviser exam and the creation of a single disciplinary body for advisors add to the financial burden.
Further driving up costs is ASIC’s oversight activities regarding choice superannuation products. This has raised eyebrows within the financial advisory community as to why advisers should bear this specific administrative cost, which arguably involves superannuation funds as a key component of the equation.
ASIC has broken down these costs, itemizing the components being billed to advisors. This includes:
CSLR implementation
Choice superannuation products oversight
Adviser examination and registration
Compliance for SMSF (Self-Managed Super Funds) establishment advice
The newly structured single disciplinary body system
Moreover, financial advisers will share additional regulatory costs with other financial advice sub-sectors. These costs encompass several areas including ASIC’s cyber resilience initiatives, breach reporting mechanisms, the employment of artificial intelligence, dispute resolution processes, penalties for the non-lodgement of financial reports, enforcement against unlicensed financial advice, and restrictions on cold-calling for superannuation switching.
Critics argue that the levy structure places an undue financial load on advisers for areas where other stakeholders, such as superannuation funds and accountants, significantly contribute and should possibly share responsibility. For example, the costs associated with SMSF establishment advice compliance are shared more equitably between accountants and advisers, reflecting their respective roles.
On a positive note, costs associated with combating unlicensed financial advice and cold-calling superannuation switching will be distributed across all financial advisory sub-sectors rather than being shouldered solely by individual advisers.
Financial advisers looking to understand the reasoning behind their increased ASIC levy can refer to the detailed breakdown provided by ASIC. According to ASIC's figures, the overall regulation cost for the financial advice sector for 2022-23 sat at $47.6 million, which is poised to rise to $48.4 million in 2023-24.
The need for these measures, while increasing costs in the short term, is part of an effort to create a more robust and fairer financial advisory industry, aiming to benefit consumers and professionals alike by ensuring higher standards and better protection mechanisms.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
NSW Fair Trading’s criminal proceedings against Network Strata Services Pty Ltd, trading as Netstrata, have pushed strata governance and insurance transparency back into the national spotlight. The regulator alleges the company and its director and licensee in charge breached statutory obligations connected with strata scheme management in New South Wales, including alleged failures around conflicts of interest, undisclosed financial benefits and information provided to the regulator. - read more
A fresh dispute over the proposed Insurance Brokers Code of Practice has sharpened the focus on transparency for Australian small businesses. Industry figure John Trowbridge has criticised gaps in the draft code, particularly around whether brokers should disclose commissions and other remuneration to all clients, not only those captured by narrower product or client categories. - read more
A recent Australian Financial Complaints Authority decision has put a spotlight on a detail that can be easy to overlook: how an income protection policy defines income. In the case, a policyholder receiving payments under an employer-arranged group income protection policy argued that regular sales commissions should be counted when calculating his pre-disability income. - read more
A fresh dispute over Australia’s insurance broking standards has put transparency back in the spotlight for small business policyholders, including personal trainers, fitness instructors and studio operators. On 17 July 2026, several consumer and strata owner groups withdrew from consultation on the National Insurance Brokers Association’s rewritten Insurance Brokers Code of Practice, arguing that industry self-regulation does not go far enough on conflicted payments and commission disclosure. - read more
Australia’s life insurance sector has welcomed the Federal Government’s updated expectations for APRA and ASIC, a policy signal that could shape how insurers balance consumer protection, affordability and innovation. The new expectations ask the regulators to keep the financial system safe and stable while also supporting competition, productivity and proportionate oversight. For life insurance customers, the practical question is whether that balance leads to clearer products, better service and cover that remains within reach. - read more
Life insurance is a financial product that provides a lump sum payment to your beneficiaries in the event of your death. It is designed to offer financial security by covering debts, daily living expenses, and future financial obligations. - read more
Navigating the complex world of insurance can often feel daunting, but understanding the importance of life stage consideration when choosing life insurance is essential. As we journey through the various chapters of our lives, our financial responsibilities, dependents, and personal circumstances evolve. These changes invariably have significant implications for our insurance needs. - read more
Life insurance serves as a crucial safety net, guarding your loved ones against the unforeseen. Just as you would take care of your health through regular check-ups, it is equally important to ensure that your life insurance policy remains in sound condition to provide the necessary protection. - read more
Life insurance is a financial product designed to provide a safety net for your loved ones and business in the event of your passing. At its core, life insurance aims to deliver financial protection by paying out a lump sum or ongoing payments to a designated beneficiary upon the insured's death. - read more
Life insurance remains one of the most crucial considerations for new parents aspiring to provide a secure future for their growing families. The arrival of a child marks a transformative moment, redefining priorities and responsibilities. At its core, life insurance is a safety net, designed to offer financial protection and stability to loved ones in the event of an unforeseen tragedy. - read more
Knowledgebase
Double Indemnity: A clause or provision in a life insurance policy that doubles the payout in cases of accidental death.
No comments yet. Be the first to share your thoughts.