Two adviser bodies, two funding proposals for FAA
In their submission to the MED the Professional Advisers Association (PAA) opts for the MED's Option 4 suggestion of a flat $40 levy on all market participants to fund both the FMA and the FAA.
The Institute of Financial Advisers (IFA) has come up with its own proposal for funding, suggesting separate levies of $25.40 for all market participants to fund the FMA and $250 paid by both AFAs and RFAs to fund the FAA, with QFE advisers paying $175 each.
In its submission the PAA also criticises the MED's preferred funding option saying it would disproportionally hit advisers.
"The ‘preferred option' in the MED discussion document proposes that just 6,900 registered financial advisers (RFAs) and AFAs provide $6.3 million on FMA funding, while 75 QFEs covering some 23,500 QFE advisers provide less than $100,000 in FMA levy funding. Plainly this is inequitable."
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