The CEO of the AIOFP, Peter Johnston, reports on the letter to the Minister from JAWG/ASIC levy

Hi, two interesting issues needing clarification.

  • the ASIC Levy seems to be a mistake by the Member for classifying as a ‘Insurance product provider’ and when they queried ASIC yesterday ASIC maintained the numbers were ‘correct’ and failed to pick up the mistake. We have sent a note to ASIC Advice Head Leah Sciacca seeking clarification.
  • Attached is a letter from JAWG to the Minister stating the ‘bleeding obvious’ but strategically now choosing to stay away from pushing for Best Interests to be replaced by a Best Advice duty [to suit the Institutions]. It appears JAWG are now taking a more generic position trying to influence/intimidate the Minister with their numbers.
  • This other issue is coincidentally another ‘LEVY’ moment.
  • You may ask what JAWG is….[no, not a 1970’s Shark horror Movie gone wrong], it’s one of the fundamental problems within the Advice industry – too many Associations from different backgrounds pushing their own agendas, confusing Canberra then dividing and ruling the Advice community ie FASEA, LIF, Grandfathering etc outcomes.
  • This letter is signed off by 13 Associations with only 2 truly representing Advisers – FINSIA/FSC/TAA/CFA Societies representing Institutions, Chartered Accountants/CPA/IPA representing Accountants, FPA/AFA/Boutiques representing Consumers/Instos and Licensees Forum is not an Association. The only relevant Associations for Advisers are SMSF and the Stock Brokers/Advisers.
  • The AIOFP chose to not support the LEVY QAR from the beginning, was not officially asked to join JAWG and would have chosen not to join anyway. The similar position we took in 2015 to not join the FSC/AFA/FPA supporting Minister O’Dywer with LIF/FASEA etc. We are unashamedly and unapologetically always representing the best interests of Advisers, no compromising.

With an Advice industry now downsized by 50% and still maintaining 13 Associations [many of dubious intent] the only way to correct this imbalance is Advisers NOT supporting them and NOT giving away their political capital to the ‘enemy’ – it simply does not make political or strategic sense to do that. We only need 3 Associations for the advice community, the Mortgage industry only has two and it works.


Peter Johnston | Executive Director
Association of Independently Owned Financial Professionals
Suite 1211, 1 Queens Road, Melbourne VIC 3004
P 1800 111 203, d 03 9863 7574, m 0418 857 621 | Download my business card

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