FDR compliant fees lower than suggested

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Financial Dispute Resolution's (FDR's) complaint fees are lower than the Dispute Resolution table said in the current issue of ASSET magazine.

Friday, October 15th 2010, 12:18AM 3 Comments

The correct complaint fees for the FDR process are:

• Level One:          $775
• Level Two:          $2350
• Level Three:       $3270

ASSET magazine printed the "straight to FDR" fees rather than these fees which will be most commonly used by members.

FDR has also launched a membership option for ‘umbrella' groups, such as a franchisees or licensees. This means a group of advisers will only pay the base fee once, rather than having to pay $1000 membership fee each.

For example a franchise with 30 advisers would pay the one Base Fee of $1000 (for the group) as a membership fee, then $250 per authorised adviser. So the total cost they are paying is:

Base Fee:                                            $1000

30 x authorised advisers @:        $250 each = $7,500

Total of:                                               $8,500

So for each adviser the fee is $8,500 divided by 30 = $283 per adviser, including GST.

If there are 200 advisers, the maximum fee cap kicks in of $20,000, so it will be only $100 per adviser. 

FDR says organisations should use the fee calculator on its website to work out what they would have to pay.

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