Costs mount up for regulation
The IFA estimate that in addition to government agency charges totaling $1,795, single-person AFA practices would have to stump up with a further $1,000 to meet complaints body and competence assessment costs in the regulatory regime's first year of operation.
In subsequent years, it says, AFAs would probably pay $470 to meet basic compliance costs.
However, the IFA figures do not include estimates of any increased PI cover expected under regulation, ongoing education costs or further compliance expenses such as producing an adviser business statement.
In a newsletter the IFA also says the Qualifying Financial Entity (QFE) regulatory fees - set at $4,630 in the first year followed by an annual $1,140 charge - appear inequitable compared to AFA rates.
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