FSPR Annual Confirmation and FMA Levies

FSPR Annual Confirmation and FMA Levies

Information for Financial Advisers, FAPs and Authorised Bodies – April 2021

All FSPs are required to file an annual confirmation under section 28 of the Financial Service Providers (Registration and Disputes Resolution) Act 2008. We have received a large number of phone calls from financial advisers who are navigating these confirmations on the Companies Office website. To help you, we have sought some clarification.

Each FAP, Authorised Body and Financial Adviser must each complete their own annual confirmation and pay their own FMA levy. In addition to the FMA levies, each party will also have to pay the Annual Confirmation fee of $86.25 incl. gst.

The FMA levies are:
– $345 incl gst payable by each Financial Adviser
– $299 incl gst payable by each licensed FAP
– $759 incl gst payable by each Authorised Body

If you have a FAP in your own name, and therefore call yourself a FAP and not a financial adviser, then your FAP has an additional FMA levy of $1012 incl gst for giving regulated financial advice to clients on its own account.

For more detailed scenarios to see the FMA levies for your type of business, see below.

Scenario 1 – If your company is a licensed FAP with you as the sole adviser (i.e you are the owner of the company and you are the only adviser) then you will fill out two annual confirmations and your levy (incl.gst) is:
– Class 6G $345 – FMA levy for you as a Financial Adviser plus
– Class 6H $299 – FMA levy for your licensed FAP
This means you have to complete two annual confirmations and in total over the two confirmations pay $644 in levies.

Scenario 2 – If your company is a licensed FAP with many advisers then its levy (incl.gst) is:
– Class 6H $299 – FMA levy for the licensed FAP.
Each Financial Adviser covered under that FAP licence has to complete their own annual confirmation and pay their own Financial Adviser fee.

Scenario 3 – If you have a FAP in your own name and therefore call yourself a FAP and not a financial adviser then you only have one annual confirmation to complete and your levy (incl.gst) is:
– Class 6H $299 – base FMA levy for the licensed FAP plus
– Class 6H(C) $1012 the fee for the FAP providing advice on its own account
This means you have to do one annual confirmation and pay $1,311 in levies.

Scenario 4 – If your company is an authorised body with you as the sole adviser then you will fill out two annual confirmations and your levy (incl.gst) is:
– Class 6F $759 – FMA levy for your Authorised Body plus
– Class 6G $345 – FMA levy for you as a Financial Adviser
This means you have to do two annual confirmations and in total pay $1,104 in levies.

Scenario 5 – If your company is an authorised body with many advisers then its levy (incl.gst) is:
– Class 6F $759 – FMA levy for the Authorised Body.
Each Financial Adviser covered under that Authorised Body has to complete their own annual confirmation and pay their own adviser fee.

If you have further queries, please email info@financialadvice.nz or call us on 0800 432 101

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