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 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|
*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.