AMA: I'm Phil Anderson, GM Policy, Advocacy & Standards at FAAA, Ask Me Anything!

Thanks Dela. I do think that the CSLR is another factor that could present an obstacle for new advisers coming into the advice profession. Who would want to be held financially responsible for poor advice that was provided by another adviser, even before you entered the advice profession. The CSLR levy, however is just one of a number of costs impacting financial advisers and it is likely to be less than the ASIC Funding Levy. There is a sector cap of $20m, above which the Minister must approve any special levy and where they have the power to allocate the additional levy to a broader range of sectors. We would hope that in any year where the financial advice profession hit that $20m threshold, that the Minister would make exactly this decision. In that case, based upon a total cost of $20m for the profession, the cost of the CSLR could be capped at around $1,300 per year per adviser in the worst case.

This is why we have to work so hard to encourage new entrants into this critically important profession. We all have a role to play in rebuilding the advice profession.

Incidentally, the FAAA is holding a webinar on Tuesday 6 August to hear from AFCA and the CSLR about how the CSLR will work. Please attend this if you would like to know more about the CSLR.