Licensing fees and FMA levy
On 17 June 2019 Cabinet agreed on the licensing fees and the FMA levies that will apply in the new financial advice regime.
You can view the fees and levies in the below tables.
Transitional licensing fees
|Application fees||Fee (ex GST)|
|Financial advice provider application fee||$405.00|
|Additional fee for any authorised body named in an application||$38.75|
Full licensing fees
|Application fees||Fee (ex 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||2 hours|
|Tier 2 – financial advice providers that engage multiple financial advisers but no nominated representatives||$767.00||3 hours|
|Tier 3 – financial advice providers that engage one or more nominated representatives||$922.00||4 hours|
|Additional fee for any authorised body named in an application||$155.00||N/A|
Changes to the FMA Levy
|Levy class||Levy (ex GST)|
|Financial advice provider*||$225.00|
|+ Amount per nominated representative engaged by the financial advice provider||$179.00|
|+ Amount if the financial advice provider gives advice on its own account||$737.00|
*Up to a maximum total levy of $80,000 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.
The final step is drafting the regulations, which will take place in the coming months.