tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Big DIMS bill looming

Financial advisers who provide DIMS are bracing themselves for a big increase in their annual Financial Markets Authority levy.

Thursday, July 28th 2016, 6:00AM 1 Comment

by Susan Edmunds

The FMA is calling for significantly more funding to help it carry out its expanded regulatory role.

Under proposals issued for consultation, the bulk of funding would be provided via financial services providers’ annual levies – many of which are set to rise.

Among the changes proposed is the suggestion that advisers dealing in DIMS be put into a separate DIMS levy category.

At the moment what they pay depends on whether they operate a personalised DIMS service under the Financial Advisers Act, which costs them $304 a year, or if they are licensed to offer class DIMS through the FMCA, which costs $1739.

New tiers would be introduced that would increase those charges to between $4000 and $6500 for those with up to $100 million under management, $8000 to $13,000 for those with $100 million to $250 million and $26,000 to $38,000 a year for those with more than $250 million invested through DIMS.

The FMA would like to see the “enhanced funding case” introduced, which would result in the highest level of levy being introduced at each tier.

In the consultation paper, the FMA said some DIMS were similar to a managed investment scheme.

Managers of securities would pay between $16,000 a year and $26,000 for FUM up to $500 million under the proposed changes.

“As the FMA do not treat DIMS categories differently we propose to consolidate DIMS providers into their own levy class and tier the levy payable according to assets under management. The implication is that the cost of the levy will increase for both types of DIMS providers but more so with those regulated under the FA Act.”

Compliance consultant Gavin Austin said he was encouraging his clients to lobby hard against the proposals.

“Fees have gone through the roof.”

He said it seemed unfair that levies were set to rise significantly for smaller operators while the bigger players who would have more clients to help bear the load were relatively unscathed.  A levy of $13,000 a year was the equivalent of working for a couple of clients with $1 million to invest, for nothing.

“Do they think the average player is that thick that they’ll just wear it?”

Tags: DIMS

« 'Client first' right standard for the industry: EverettLVR restrictions to be reviewed »

Special Offers

Comments from our readers

On 28 July 2016 at 7:45 am MPT Heretic said:
According to the consultation paper brokers and custodians 'have a higher risk profile than most other classes'. So you would imagine they would warrant increased regulatory oversight... apparently not if the proposed levy is anything to go by. Despite dealing with thousands of investors and earning revenue on literally $billions, brokers will pay a max fee of $1900 and custodians $6500. So the poor old AFA is going to be charged more than brokers and custodians, just for having 1 client using DIMS! Not hard to see the regulatory bias here. Hardly fair and transparent!

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com