(1) Every member of the reserve scheme must pay an annual fee for membership of the scheme.

(2) Every member must pay the membership fee appropriate to its class, as determined under these rules.

(1) A Class 1 member is a financial service provider—

• (a) that is a QFE; and

• (b) whose major financial service is not a financial service referred to in the descriptions of Classes 3 and 4.

(2) The membership fee for a Class 1 member is $2,000, plus $200 for the sixth and every additional QFE adviser or authorised financial adviser acting in the member's business, up to a maximum of $20,000 in aggregate.

(1) A Class 2 member is a financial service provider—

• (a) whose major financial service is providing a financial adviser service (as referred to in section 5(a) of the FSP Act); and

• (b) that is not a QFE.

(2) The membership fee for a Class 2 member that has only 1 financial adviser acting in the member's business is $700.

(3) The membership fee for a Class 2 member that has 2 to 4 financial advisers acting in the member's business is $500, plus $300 for each registered financial adviser and $250 for each authorised financial adviser acting in the member's business.

(4) The membership fee for any other Class 2 member is $1,000, plus $300 for each registered financial adviser and $250 for each authorised financial adviser acting in the member's business, up to a maximum of $20,000 in aggregate.

(1) A Class 3 member is a financial service provider whose major financial service is that of acting as an insurer (as referred to in section 5(m) of the FSP Act).

(2) The membership fee for a Class 3 member is $2,000, plus $1,000 for every $5 million of in-force premiums from retail business that exceeds $10 million, up to a maximum of $100,000 in aggregate.

(3) The amount of in-force premiums from retail business held by a Class 3 member must be determined by reference to the member's latest annual accounts, as at the date of those annual accounts.

(1) A Class 4 member is a financial service provider—

• (a) that is a registered bank (as referred to in section 5(c) of the FSP Act); or

• (b) whose major financial service is—

  • (i) acting as a deposit taker (as referred to in section 5(b) of the FSP Act); or

  • (ii) providing credit under a credit contract (as referred to in section 5(e) of the FSP Act).

(2) The membership fee for a Class 4 member that is a registered bank is $100,000.

(3) The membership fee for any other Class 4 member is determined according to the amount of the member's retail advances to customers, as follows:

(4) The amount of a Class 4 member's retail advances to customers must be determined by reference to the member's latest annual accounts, as at the date of those annual accounts.

(1) A Class 5 member is a financial service provider—

• (a) whose major financial service is any of the financial services described in section 5(ab), (d), (f), (g), (h), (i), (ia), (j), (k), (l), or (n) of the FSP Act; and

• (b) that is not a QFE.

(2) The membership fee for a Class 5 member that does not have any financial advisers acting in the member's business is $2,000.

(3) The membership fee for any other Class 5 member is $1,000, plus $300 for each registered financial adviser and $250 for each authorised financial adviser acting in the member's business, up to a maximum of $20,000 in aggregate.

(1) The membership fee is calculated on an annual basis.

(2) The membership year starts on 1 July in each year.

(3) The fee calculation date for a membership year is as follows:

• (a) for new members, the date of the member's application for membership:

• (b) for existing members,—

  • (i) 1 May of the preceding membership year; or

  • (ii) if, on that 1 May the person was not a member, the date of the member's application for membership.

(4) The annual membership fee must be collected in 2 instalments, as follows:

• (a) the first instalment covers the period 1 July to 31 December:

• (b) the second instalment covers the period 1 January to 30 June.

(5) Each instalment is payable within 10 working days after the commencement of that instalment period or (if the person becomes a member part-way through an instalment period) on the date on which the person's membership starts.

(6) This rule is subject to rule 11.

(1) If a person becomes a member part-way through a membership year, the person is liable for only a pro rata proportion of the amount of the instalment otherwise payable by the member for an instalment period that has already commenced.

(2) If a person ceases to be a member before 31 December in any year, the person is not liable to pay the second instalment of the annual membership fee.

(3) If, before the commencement of an instalment period (and before paying the relevant instalment), the member gives notice that it will cease to be a member part-way through that instalment period, the person is liable for only a pro rata proportion of the amount of the instalment otherwise payable by the member.

(4) No part of a membership fee is refundable, except when necessary to correct an error.

(5) Liability for a pro rata proportion of an instalment under this rule must be calculated on the basis that a person is liable to pay a proportion of the instalment for each month, or part of a month, for which the person is a member.

The pro rata proportion of an instalment of the annual membership fee of a person that becomes a member of the reserve scheme before 5 November 2010 (which is the date these rules come into force) must be determined as if the membership commenced on 5 November 2010.

(1) Every member or former member of the reserve scheme must pay a complaints charge in respect of every complaint that is accepted by the reserve scheme.

(2) No more than 1 complaints charge is payable in respect of a complaint.

(3) The amounts of the complaints charges are as set out in rules 14 to 16.

(4) Every complaints charge is payable within 10 working days after the date of invoice.

(1) A Level 1 complaint is a complaint that is resolved, withdrawn, or that otherwise ceases without the formal involvement of a scheme conciliator, scheme mediator, or scheme adjudicator.

(2) The complaints charge for a Level 1 complaint that is resolved by the parties entering into an agreed settlement is $775.

(3) The complaints charge for a Level 1 complaint that is withdrawn or that otherwise ceases is $625.

(4) However, the complaints charge for a Level 1 complaint that, with the member's agreement, was accepted by the reserve scheme without having been considered under the member's own complaint procedures is $1,500.

(1) A Level 2 complaint is a complaint that is resolved, withdrawn, or that otherwise ceases following the formal involvement of a scheme conciliator or scheme mediator but without the formal involvement of a scheme adjudicator.

(2) The complaints charge for a Level 2 complaint that is resolved by the parties entering into an agreed settlement is $2,350.

(3) The complaints charge for a Level 2 complaint that is withdrawn or that otherwise ceases is $2,175.

(4) However, the complaints charge for a Level 2 complaint that, with the member's agreement, was accepted by the reserve scheme without having been considered under the member's own complaint procedures is $2,850.

(1) A Level 3 complaint is a complaint in which a scheme adjudicator is formally involved.

(2) The complaints charge for a Level 3 complaint in which no scheme conciliator or scheme mediator was previously involved is $1,695.

(3) The complaints charge for a Level 3 complaint in which a scheme conciliator or scheme mediator was previously involved is $3,270.

(4) However, the complaints charge for a Level 3 complaint that, with the member's agreement, was accepted by the reserve scheme without having been considered under the member's own complaint procedures is $3,500.

(1) The membership fees and complaints charges set out in these rules must be paid to the Crown and are recoverable as debts due to the Crown.

(2) The administration of the fees and charges is the responsibility of the Ministry of Consumer Affairs.

(1) If a member or former member of the reserve scheme wishes to dispute the amount of any membership fee or complaints charge for which it is liable, the member or former member must notify the Ministry of Consumer Affairs of the dispute and the reasons for it,—

• (a) in the case of a dispute about a membership fee, before the last day on which the fee is payable; and

• (b) in the case of a dispute about a complaints charge, within 10 days after the date of the invoice for the charge.

(2) Liability for payment of the fee or charge is suspended until the dispute is settled.

The fees and charges prescribed by these rules are inclusive of goods and services tax.