tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, December 8th, 7:32PM

News

rss
Latest Headlines

IFA rails against regulatory levies

The Institute of Financial Advisers is railing against the levy regulators will charge advisers to pay for the new regime, after Parliament approved regulations locking in the fees for authorisation.

Thursday, August 19th 2010, 6:00AM 3 Comments

by Paul McBeth

Parliament approved financial services regulations which lock in the fees advisers and qualifying financial entities will have to pay to be licensed.

An adviser will have to pay $1,120 for the initial authorisation, then $560 in ongoing annual fees. That's down the $1,385 flagged by the Ministry of Economic Development, though the ongoing fee is higher than the $410 of the first estimate.

Qualifying financial entities will have to pay $4,780 to register, with ongoing fees of $4,500, compared to the proposed $4,630 registration and $1,140 annual fees.

The fees are inclusive of GST, and the registry confirmed the fees will rise when the increased tax comes into effect in October.

"While there are no real surprises in these numbers there are still issues that advisers need to be aware of and continue to debate for the benefit of the regulators. That will be setting the so called levies," said IFA President Nigel Tate.

Tate said the cost of legislation will likely run into millions of dollars, and it should be split evenly between taxpayers and industry, as consumers will ultimately benefit from the regime.

"This in my mind is an unfair burden on the advisers as I feel this should be shared between the profession - that is all advisers - and the general public for whom these regulations were designed to benefit," Tate said.

"Central government should be carrying at least half of this cost on behalf of the general public," he said.

The government pumped in an extra $12 million last year to help fund the implementation of a regulatory body for advisers, with an expectation it will become self-funded through levies and fees by the 2011/12 financial year.

 

Paul is a staff writer for Good Returns based in Wellington.

« Old star returns with new fundKiwiSaver mismatch a 'huge challenge' for advisers »

Special Offers

Comments from our readers

On 19 August 2010 at 7:52 am Independent Observer said:
Whilst it is difficult to accurately complete the maths for this, I suspect that the proposed registration fees will fall well short of the compliance and administrative requirements to police the industry.

In the end the consumer (semantics: “taxpayer”) pays directly through increased advisory fees, or government support to fund any shortfalls.
On 19 August 2010 at 8:37 am Craig Myles said:
While it is pleasing to see the IFA taking a strong stand on this issue. This part of the compliance cost structure is only a small part of the overall cost of compliance placed on financial advisory businesses as a result of the FSP and FAA.

This legislation imposes a very high cost regime.
On 19 August 2010 at 10:36 am Majella said:
For those who have the option of NOT becoming certified, this looks like a reasonable incentive to opt out. a business can still be run in line with regulatory requirements, but this (yet another) cost is at least optional - as is the DSR expense.
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.97 5.75 5.69

Last updated: 6 December 2024 9:11am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com