Other regulatory issues
Stay up to date with broader developments and advocacy activities impacting members who practice in financial advice in Australia.
Compensation Scheme of Last Resort
This scheme was established to compensate clients who were victims of financial misconduct. If the client meets the eligibility criteria and if there is an unpaid determination by Australian Financial Complaints Authority, the CSLR scheme can provide compensation up to $150,000.
From 1 July 2024, the CSLR will be funded by the levies imposed on some sectors of financial services industry. Such as;
- licensees that provide personal advice to retail clients on relevant financial products
- credit providers
- credit intermediaries
- securities dealers
The cost of the CSLR will be determined by the CSLR scheme for each levy period. ASIC will issue levy notices and collect the levy.
Find out more on the CSLR
The CSLR is not a regulator or a government agency
Read our relevant submissions below.
ASIC Industry Funding Model
ASIC’s regulatory costs are recovered through the industry funding levies and fees for service activities such as licensing and registration.
The regulatory costs are allocated to subsectors and the levies are calculated for each subsector in proportionate to the regulatory resources allocated to that sector.
Each year ASIC publishes a Cost Recovery Implementation Statement (CRIS) indicating estimate cost and levies for each subsector. The actual levy notices are issued after issuing the CRIS when actual levies are calculated.
Find out more on ASIC IFM
Read our relevant submissions below.
Wholesale client regime
Accountants are asked to issue certificates to attest the net wealth or gross income of a client/s or trustees of Self-Managed Super Funds.
What you need to know:
- Wholesale client, sophisticated investor and professional investor have different meanings in the Corporations Act 2001.
- Net wealth and Gross Income are not defined in the Corporations Act. Hence subject to different interpretations by different law firms.
- Accountant’s certificate is a statement of facts only.
- Consider the independence requirement in APES110 if you are running a financial planning and an accounting practice.
- Check whether it is covered by your Professional Indemnity Cover.
- Seek legal advice as this is an area of potential litigation.
- If you act in the capacity of a relevant provider, not an accountant, ensure that you abide by Financial Planners and Advisers Code of Ethics by acting in the best interest of your client.
Find out more on Certificates issued by a qualified accountant
Read our relevant submissions below.
Earlier items
Contact us
Members are invited to provide feedback on professionalising the financial advice industry and improving consumer outcomes.
Contact the Financial Advice Team