This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 July 2012, amend the Financial Advisers (Fees) Regulations 2010 (the principal regulations) to ensure that all fees include the correct amount of goods and services tax.
The principal regulations were amended on 1 April 2011 to add a new regulation (regulation 6A) prescribing fees and costs payable to the Securities Commission (the Commission) in respect of an application for an exemption under section 148 of the Act. The amounts prescribed by regulation 6A did not reflect the increase in goods and services tax from 12.5% to 15% that took effect from 1 October 2010. Section 78(3) of the Goods and Services Tax Act 1985 has the effect of automatically applying tax increases to fees, charges, or other amounts prescribed by an Act or regulations. However, section 78(3) does not apply to regulation 6A, because regulation 6A was added to the principal regulations after 1 October 2010.
These regulations also—
update the amounts prescribed by regulations other than regulation 6A in the principal regulations, to ensure that the regulations as a whole can be read and applied without recourse to section 78(3) of the Goods and Services Tax Act 1985:
replace references to the Commission with references to the Financial Markets Authority (the FMA), to reflect the disestablishment of the Commission and establishment of the FMA on 1 May 2011.
Date of notification in Gazette: 26 April 2012.
These regulations are administered by the Ministry of Economic Development.