Feedback is sought on a proposed fee structure under the Financial Markets Conduct Act (FMCA).
The Ministry of Business, Innovation and Employment (MBIE) wants submissions by 27 June 2014.
General approach
The proposals cover registration fees for registering offers on the new online register to come into operation on 1 December, and FMA levies and fees for ongoing approvals, particularly for continuously offered products, and managed investment schemes (MIS).
The Government made decisions on licensing fees in conjunction with commencement of Phase 1 of the FMCA from 1 April.
The discussion document states that the fee model is designed to have as few charging points as possible. The register costs have been split 75:25 between the issuers of financial products and MIS managers.
MBIE is modelling that 25% of MIS will transition to the new regime in the first year with the rest moving across in the second year.
Proposals in summary
| Service/function | Current | Proposed (GST inc) |
| FMC register fees | ||
| Lodging offer documents | No fee | $3,000 flat fee |
| Annual confirmation offer documents | No fee | $3,000 flat fee |
| Registering an MIS | No fee | $775 flat fee |
| Lodging an MIS annual report | No fee | $275 flat fee |
| FMA levy and other FMA fees | ||
| Registering an offer document | $2,000 levy | $2,000 levy |
| Reviewing offer documents | $327.11 flat fee | Fee removed |
| Permission relating to the governance of regulated products | No fee | $178.25 per hour |
| Approval of retirement scheme transfers | $255.55 per hour | $178.25 per hour |
| Consent to reversion of retirement scheme assets to an employer | $255.55 per hour | $178.25 per hour |
| Cancellation retirement scheme registration | $255.55 flat fee | $178.25 per hour |
| Filing annual accounts of a wound up superannuation scheme | $255.55 flat fee | $178.25 per hour |
| Providing annual report for superannuation scheme | From $102.22 flat fee | From $178.25 per hour |
| Registering a superannuation scheme | $102.22 flat fee | $178.25 per hour |
| Amendments to trust deed | $51.11 flat fee | $178.25 per hour |
| Financial Advisers Act variation fees | No fee | $115 application fee and $178.25 per hour |
| Filing financial statements | $255.55 flat fee | $255.55 flat fee |
| Financial market operator licensing fees | ||
| Licence applications/variations | No fee | $178.25 per hour |
| Market rule applications/changes | $115 admin fee and $178.25 per hour | $178.25 per hour |
Costs comparison for issuers
| Type of issuer | Now | Year 1 | Out Years |
| One off equity issuer | $2,327 | $5,000 | N/A |
| Continuous debt issuer | $2,327 (each year) | $5,000 | $3,000 |
| Fund manager (1 KiwiSaver scheme and 2 PDSs) | $4,501 | $10,775 | $6,275 (compared to $4,756 now) |
The information in this article is for informative purposes only and should not be relied on as legal advice. Please contact Chapman Tripp for advice tailored to your situation.
