Kepa's fees changes for mortgage advisers worrying move

Kepa chief executive Jeff Page emailed the group's mortgage adviser members last Friday telling them their monthly membership fees would be increasing if they didn't refer their risk business to the group.

"Over the last couple of months, we have reviewed the monthly subscription amounts that Kepa Home Loans Advisers are paying to Kepa to administer the Home Loans aggregation business. We have decided that if a member of Kepa Home Loans is not placing their risk business and or risk referrals through Kepa either directly or via a Kepa Risk member, then the monthly subscription will increase to $800.00 per month, plus GST. This change to the monthly subscription will take effect from the 1st August this year".

That is an increase from $250.00 per month, plus gst for a single adviser and for each additional mortgage adviser within a firm Kepa charge $150.00 per month, plus gst. It compares to $500 per month, plus gst, per adviser for NZFSG.
However, the former head of Kepa's Home Loan business, Heather Royle says the increase is more than it appears.

She says a mortgage adviser with one sub-adviser would see their membership fees increase from $400 per month, plus gst to $1600 a month, plus gst - a 400% increase!

For a mortgage-only adviser, who is not registered for gst, they will end up paying $920 a month ($800 plus GST).