Licensing fees and FMA levy

In October 2019 regulations were made that set the licensing fees and the FMA levies that will apply in the new financial advice regime.

The Financial Markets Conduct (Fees) Amendment Regulations (No 2) 2019 and the Financial Markets Authority (Levies) Amendment Regulations 2019 give effect to Cabinet’s decisions on 17 June 2019.

You can view the fees and levies in the below tables.

Transitional licensing fees

Application fees Fee (ex GST) Fee (incl GST)
Financial advice provider application fee $405.00 $465.75
Additional fee for any authorised body named in an application $38.75 $44.56

Full licensing fees

Application fees Fee (ex GST) Fee (incl GST) Threshold for charging the hourly rate
Tier 1 – sole adviser businesses or financial advice providers that only give advice on their own account $612.00 $703.80 2 hours
Tier 2 – financial advice providers that engage multiple financial advisers but no nominated representatives $767.00 $882.05 3 hours
Tier 3 – financial advice providers that engage one or more nominated representatives $922.00 $1,060.30 4 hours
Additional fee for any authorised body named in an application $155.00 $178.25 N/A

Changes to the FMA Levy

Levy class Levy (ex GST) Levy (incl GST)
Financial adviser $265.00 $304.75
Financial advice provider* $225.00 $258.75
 + Amount per nominated representative engaged by the financial advice provider $179.00 $205.85
 + Amount if the financial advice provider gives advice on its own account $737.00 $847.55
Authorised body $460.00 $529

*Up to a maximum total levy of $80,000 (GST exclusive) per annum

For fund managers, discretionary investment management services providers, and financial advice providers: Clarify that amount of levy payable is to be calculated based on total funds under management/total managed assets/total number of nominated representatives (as applicable) of the licensee and all of its authorised bodies.

Relief for sole-adviser firms

Financial service providers are generally required to pay a levy of $460 (excluding GST) when initially registering on the Financial Service Providers Register (FSPR). The Financial Markets Authority (Levies) Amendment Regulations 2019 include relief from this levy for businesses that have been relying on the sole-adviser exemption but are now required to register in the new regime.

This relief will apply for those registering their business from 25 November 2019 to 28 September 2020.

Financial Markets Authority (Levies) Amendment Regulations 2019 on the New Zealand Legislation website(external link)

Cabinet paper: Regulations to support Financial Services Legislation Amendment Act 2019 Paper 1: financial advice licensing fees and FMA levy [PDF, 193 KB]

Cabinet minute: Regulations to support Financial Services Legislation Amendment Act 2019 Paper 1: financial advice licensing fees and FMA levy  [PDF, 190 KB]

Regulatory impact statement: Financial advice: licensing fees and the FMA levy Cost recovery impact statement  [PDF, 633 KB]

Development of the fees and levies

Read more about consultation on the fees and levies.

Last updated: 24 October 2019