The regime created by the Financial Services Legislation Amendment Act 2019 (FSLAA), including new fees and levies, will commence on 29 June 2020.
Applications for transitional licences open on 25 November 2019 – three weeks later than previously announced.
Financial advice businesses should begin preparation for the transition as soon as possible.
Fees and Levies
The transitional licensing fee of $405 + GST per financial advice provider (additional fees per authorised body, and for variations) remains. Additionally, a multiple application discount is available.
Full licensing fees range from $612 + GST for sole adviser businesses, to $922 + GST for financial advice providers with nominated representatives. These are higher than the amounts previously proposed and consulted on.
Additional fees apply for authorised bodies. The Financial Markets Authority (FMA) hourly rate will apply for complex cases, although it is expected that most applicants will pay the flat rate.
Sole adviser practices are not required to pay a FMA levy upon registration under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
Minor changes have also been made to the registration regulations to facilitate transitional licensing.
To find out more about the transitional licensing application process, or to seek further details on what the new FSLAA regime could mean for you, please get in touch with one of our contacts.
Financial Services Legislation Amendment Act Commencement Order 2019 – Order in Council on 21 October 2019
Financial Services Legislation Amendment Act – Introduced 8 April 2019
FMA Guidance on the new financial advice regime
MBIE Guidance on the regulation of financial advice
Transitional Financial Advice Provider Licence Application Guide