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Proposed fees for financial sector

Hon Simon Power
Minister of Commerce


21 October 2009 Media Statement

Proposed fees for financial sector
A discussion document on fees regulations for financial service providers and financial advisers was released for public consultation today by Commerce Minister Simon Power.

"This discussion document is an important step towards the implementation of the new regime for financial service providers and financial advisers," Mr Power said.

The proposed initial registration and application fees range from $350 for registration to around $1,385 for authorised financial advisers, and around $4630 for qualifying financial entities. The ongoing confirmation and renewal fees are proposed to be substantially less.

Between 10,000 and 12,000 financial service providers (including approximately 7,200 financial advisers) are expected to pay the fees.

Funding from the fees is needed for:
• A Register of Financial Service Providers to be run by the Companies Office.
• A consumer dispute resolution regime to be run by the Ministry of Consumer Affairs.
• The supervision and authorisation of individual financial advisers and qualified financial entities by the Securities Commission.

"In accordance with Treasury and Auditor-General guidelines, the proposed fees are to be no more than is necessary to recover the costs incurred by government.

"Fees must be established before the Register of Financial Service Providers opens for business in May next year. This will be a fully electronic online register, serving as far as possible as a 'one stop shop' for collecting fees, registering financial service providers, and initiating the process for financial adviser authorisation."

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The Financial Service Providers Act and the Financial Advisers Act will be fully in force by the end of next year, but there will be a transition period starting when the Register of Financial Service Providers opens in May. From that date, financial service providers can apply for registration, and financial advisers can seek authorisation from the Securities Commission.

The fees discussion document is the latest in a series of consultation papers released this year on the implementation of the new financial services legislation.

"I’m extremely grateful to the financial sector for the time and effort they’ve put into the process so far, and I welcome their feedback on the discussion document," Mr Power said. "

The fees discussion document is available at: http://www.med.govt.nz Submissions are due by 13 November.

ENDS

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