ASIC Annual Compliance Fee

Hi this question is directed to mortage brokers. My aggregator charges us $1,500 ASIC Annual Compliance Fee and I am wondering whether your aggregators also charge you this fee?

 

I hold my own license, so I pay a fee directly to ASIC.

 

Thanks for your response Peter, is it the same amount of $1,500. I'm just wondering why ASIC doesn't invoice us as brokers directly

 

Some who are "representatives" can face a fee higher than a ASIC charge as the aggregator or licensee may need to audit and assess compliance of those under its license (and it then reflects a recovery of the costs for licensing, insurances perhaps and levies and audit.) The ASIC fee itself is a regulated "fee" basically to retain a license.

 

I don't recall, but I think it's a little less. Keep in mind that I also pay additional costs for other elements of my compliance obligations.

Overall I'd say the credit rep route is probably cheaper, but holding your own license allows more flexibility. For example I can get accreditations with lenders that aren't on my aggregators panel if I want to.

I'm also starting to hear rumours that the license itself is worth something these days. 10 years ago we were all told that this wouldn't be the case, but I know one person who sold his license for a 6 figure amount and I've heard of others being offered significant money. I suspect some of it may be fairly shady.

 

Nope

 

Hi Paul, thanks for clarifying this. When I checked again, they charge an annual compliance fee so not actually related to ASIC specifically

 

Hi Peter, wow I didn't realise the license was worth so much. I'm assuming the license must be hard to obtain?

 

Hi Terry, which aggregator are you with?

 

Connective

 

Wasn't hard to obtain in 2010, I outsourced it, cost about $3k. I suspect it's a bit harder now. I believe there's a fairly significant wait time on it now.

 

Yes agree a ACL is worth a few quid but not as much as an retail AFSL.

We get asked once a month whether we will allow someone to operate under our AFSL.

Ser up costs make the annual costs look like peanuts.

Cheers


Richard