How much you will pay to fund the FMA
Authorised Financial Advisers (AFAs) will have to pay $400 and Registered Financial Advisers (RFAs) $350 in annual levies to fund the Financial Markets Authority (FMA).
Thursday, June 7th 2012, 12:18PM 6 Comments
by Benn Bathgate
The fee structure has been broadly welcomed by both the Institute of Financial Advisers (IFA) and the Professional Advisers Association (PAA).
"Generally speaking it's about where we expected it to be," said IFA president Nigel Tate.
"Their initial figure was $1,800, I think they heard from the profession that that was unacceptable."
Tate said that with added company levies he expected AFAs would pay in the region of around $537 annually.
PAA chief executive Edward Richards said the levies were an acceptable outcome.
"When we met with [Commerce Minister] Craig Foss earlier this year with other associations he said the levies would not spring a major surprise, so I think in the circumstances the PAA is reasonably comfortable with the outcome," he said.
Edwards said that while additional costs were never welcome, the industry accepted occupational licensing fees were part of professionalism.
"We are naïve to think we can proceed without some degree of costs on the industry, but some of these fees and levies will be passed onto financial services consumers," he said.
As well as announcing AFA and RFA fees the Minister revealed banks annual levies will be between $2,000 and $350,000, insurers between $2,000 to $150,000 and Contributory Mortgage Brokers $2,000.
Foss said the FMA fees would raise $16.4 million from financial services providers in funding for the FMA.
"The new levy and fee structure will help fund a well-regulated market that all investors can trust," he said.
The new fees and levies will apply from 1 August 2012.
Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to firstname.lastname@example.org
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