With the government's announcement to reduce the ASIC levy to 2019 levels around the $1,100 - $1,200 mark, this is arguably more of a political win than an actual step to make advice more affordable. A saving of $2,000 per year in ASIC levy fees is simply not good enough.

While the announcement to reduce the ASIC levy is well received by industry bodies, a reduction in a levy  is not the answer.

The issue is not that solely rising costs are to blame, it's that it is becoming incredibly difficult for advisers to generate revenue through product. For many advisers, relying on value-driven product advice around the $2,500-$3,500 mark paid through super and investment products is their mains source of income.

What is incredibly annoying is that there is so much chatter with regulators wanting to make advice more affordable. What they fail to realise is that to have quality and affordable advice, fees need to be taken out of super, investment and insurance products. 

Most clients can't part $3,000 upfront but really do need the advice. Having extra ways for advisers to get paid means more people get affordable financial advice.

When the regulators make it more difficult to charge through product with this moronic fee consent form whom the product providers decide how to run things, advisers are left wondering why they are in this business at all.

Take this example from an adviser who asked us to change his Information Release form last month:

'Could you please add "This authority is valid until revoked by me" into the information release authority?

We have an issue where REST won't accept a signed authority from last year because it doesn't say that.'

Deregulation is a bit of a worry. Yes, it might help the problem by 20%. or so But the real issue is that with deregulation comes the incumbent, billion dollar super funds and platform providers that control it all.

The super funds and insurers will start dictating how the industry is run, how advisers can charge through product and importantly how they can take the control away from non-aligned advisers and bring advice in-house.

I've heard numerous accounts from advisers this year alone that a couple of the industry super funds have been refusing 3-way calls with advisers and when they did a 2-way call without the adviser, they were trying to solicit the client to get in-house financial advice when the client was trying to get an authority approved to roll out their super from that fund.

This industry needs reforms not deregulation. 
We need an industry standard and digital:

• Information Release form
• Fee Consent form
• Engagement Letter, Service Agreement, FDS Letter

• Higher upfront and ongoing insurance commissions

• A simpler, smaller, more targeted SoA that's less templated generic crap with more bespoke reasoning

• A clear understanding of what is best practice and what's the regulator's expectation for licensees and advisers

• greater support to facilitate online advice

Th advice industry is getting better, however it is now at the mercy of Big Super.