Tate slams FAA levy

Tate said some of the proposed funding structures outlined in the Ministry of Economic Development (MED) discussion paper – which could see AFAs face annual levies of as much as $1,715 – are “inherently imbalanced” against advisers as the 797 AFAs (to date) are “the smallest group that would benefit.”

The MED’s favoured option is for a combined FMA/FAA levy that would see AFAs operating through a limited liability company charged $1,715, RFA sole traders $1,140 and QFEs $69,435.

Tate said the IFAs favoured option in the MED paper was option four, a $40 levy on “all companies, limited partnerships, building societies, credit unions, industrial and provident societies, friendly societies and contributory mortgage brokers.”