Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
Currently, providers of wholesale discretionary investment management services are in levy class 6(c), for which the levy is $6,095. These amendments will move those providers into levy class 7, for which the levy is $529.
Currently, the levy for class 9 (payable on lodgement of a product disclosure statement (PDS) for managed investment products in a managed fund) is $609.50 per fund covered by the PDS. These amendments will result in the same amount being payable for each multi-fund investment option or life cycle stage of a life cycle investment option covered by the PDS.
For most levy classes, the levy is payable to the Registrar of Financial Service Providers. If the levy is not paid, the Registrar may deregister the person under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. This serves as a deterrent against non-payment of the levy. There is no equivalent sanction for classes 8, 10, and 13, where the levy is payable to the Financial Markets Authority (FMA). If persons in those classes do not pay their levies, the FMA has to take debt recovery action, which results in it incurring costs. New regulation 13 and the related changes to Schedule 2 will allow the FMA to recover those costs from the people who do not pay their levies on time.
These regulations also make a number of minor amendments to update terminology in consequence of the coming into force of the Financial Markets Conduct Act 2013 and to revoke the definitions of terms that are no longer used.
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 10 August 2017.
These regulations are administered by the Ministry of Business, Innovation, and Employment.