Its our most frequently asked question – what is the cost of obtaining your own AFSL?
There is a myth that the cost of obtaining and maintaining an AFSL is not feasible for a small – medium sized business. However, this doesn’t have to be the case. There are many benefits of self licensing and in most cases, the overall cost will be on par with paying a larger dealer group for an authorisation.
Today, we break down the estimated initial and ongoing costs of self licensing. Of course, every case is different, so please do get in touch if you would like to receive a tailored quote.
|Consultant Application Fee||$8,000 – $10,000||Dependent on the authorisations required and the number of proposed Responsible Managers|
|Licence Application Fee (Payable to ASIC)||$7,537||Maximum cost for corporate entity providing personal advice to retail clients.|
|PI Insurance||$10,000 – $20,000||Dependent on the authorisations, claims history, business turnover etc.|
|Appointment of Auditor||$3,000 – $5,000||Dependent on size and nature of business.|
|AFCA Annual Base Levy||$350||Dependent on size and nature of business.|
|Ongoing External Compliance Support||$8,000 – $12,000 p.a.||Dependent on size and nature of business.|
|ASIC Annual Levy||$1,500 plus $907 per adviser.|
|ASIC Annual Fee to Lodge Financials||$600|
|Annual Financial Audit||$3,000 – $5,000||Dependent on size and nature of business.|
|AFCA Membership||$350||Minimum annual base levy for 2018-2019.|
*Please note these figures provide a guide only and do not constitute a quote.
We are at the hands of ASIC when it comes to relative timeframes for AFSL approval. We have seen anything from a 6 week turnaround, to an 8 month turnaround. Depending on the structure of your business, once approved, you will generally have 10 days to transition to your own licence.