The FDR scheme is funded by Government and by Scheme Members.
All of the FDR scheme membership and complaint fees are listed below on this page, including a Scheme Member fee calculator. To use the calculator, select your membership type and enter the details appropriate to your fee type. The total fee and cost per-person (where applicable) will be calculated for you. All membership fees are annual. Membership types are explained below.
If you have any queries, please call FDR on 0508 337 337.
All fees are inclusive of GST
* if you consider you are not represented by these membership types, e.g. a franchise group, there is more information under the membership types heading below.
Membership Types & Fees
There are five FDR membership types:
- Type 1 - Qualifying Financial Entities - QFE (other than insurers, deposit takers, lenders and registered banks. See Types 3 and 4 below). Pros and cons of becoming a QFE - Financial Markets Authority advice.
- Type 2 - Financial Adviser or Broking Business (individual or organisation)
- Type 3 - Insurers
- Type 4 - Deposit takers, lenders and registered banks
- Type 5 - Other financial service providers
If you are represented in two or more of the membership types, the fee is determined by the type that contributes the highest percentage of your total revenue.
Please also note that if you or your organisation is part of an 'umbrella' group, e.g. as a franchise or license, you may qualify under a Group Service Provider membership. Membership as a Group Service Provider means the overall membership cost can be divided among all members, thereby reducing the costs per member. Please check with your parent organisation or provider to clarify your status. If you have any queries, please feel free to call FDR on 0508 337 337.
Membership fees are paid six-monthly, in advance, and are inclusive of GST at 15%.
There are two fee types.
Membership Fees
Type 1 - Qualifying Financial Entities - QFE
(other than insurers, deposit takers, lenders and registered banks)
- An organisation applying for QFE status
- An approved QFE
- A number of partner entities that are each registered and jointly have QFE status
| QFE | Fee |
|---|---|
|
Base fee plus Per adviser employee or nominated representative |
$1,000
$200 |
Minimum fee: $2,000
Maximum fee: $20,000
Example:
30 individuals = $7,000, or $233 per individual
200 individuals = $20,000 (max) = $100 per individual
Type 2 - Financial Adviser (individual or organisation)
(Non-QFE Membership)
| Business with 1 adviser | Fee |
|---|---|
| Flat fee | $700 |
| Business with 2-4 advisers: | Fee |
|---|---|
|
Base fee plus Per registered adviser Per authorised adviser |
$500
$300 $250 |
Example:
2 authorised advisers = $1,000, or $500 per adviser
2 registered advisers = $1,100, or $550 per adviser
3 authorised advisers = $1,250, or $417 per adviser
3 registered advisers = $1,400, or $467 per adviser
4 authorised advisers = $1,500 or $377 per adviser
4 registered advisers = $1,700, or $425 per adviser
| Business with 5+ advisers | Fee |
|---|---|
|
Base fee plus Per registered adviser Per authorised adviser |
$1,000
$300 $250 |
Maximum Fee: $20,000
Example:
30 authorised advisers = $8,500, or $283 per adviser
30 registered advisers = $10,000, or $333 per adviser
200 authorised advisers/registered advisers = $20,000 (max) = $100 per individual
* If you consider you are not represented by these membership types, e.g. as part of a franchise group, or Group Service Provider please call FDR to discuss.
Type 3 - Insurers
| Premium: | Fee |
|---|---|
| Per $5 million total current, in force premium, for retail clients, at time of application | $1,000 |
Minimum fee: $2,000
Maximum fee: $100,000
Example:
$250 million in advances = $50,000
Type 4 - Deposit takers, lenders and registered banks
| Advances to retail clients, at time of application: | Fee |
|---|---|
| Less than $1 million | $1,000 |
| $1 million but less than $50 million | $2,000 |
| $50 million but less than $200 million |
$5,000 |
|
$200 million but less than $500 million $500 million but less than $1,000 million $1,000 million plus, and registered banks |
$10,000 $20,000 $100,000 |
Example:
Advances of $50 million to $200 million = $5,000
Type 5 - Other financial service providers
Other financial service providers with or without registered financial advisers or authorised financial advisers.
There are some exceptions: financial adviser businesses, brokers and insurers, deposit takers and lenders.
Included are:
- A contributory mortgage broker
- A public issuer
- An issuer of securities to the public
- A statutory supervisor of participatory securities
- A trustee in respect of securities offered to the public
- A unit trustee
- A superannuation trustee
- A promoter of securities offered to the public
- A manager of participatory security or unit trust
- Keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons
- Operating a money or value transfer service
- Issuing and managing means of payment
- Giving financial guarantees
- Changing foreign currency
-
Entering into or trading on an exchange (in an over-the-counter market or otherwise) the following on behalf of another person - Including
- Money market instruments (including cheques, bills, certificates of deposits);
- Foreign exchange (including forward foreign exchange contracts);
- Derivative products including, but not limited to, futures and options;
- Change rate and interest rate instruments, including products such as swaps and forward rule agreements;
- Transferable securities;
- Other negotiable instruments and financial assets.
|
|
Fee |
|---|---|
|
Base fee plus |
$1,000 |
| Per registered adviser | $300 |
| Per authorised adviser | $250 |
Maximum fee: $20,000 or;
Financial service providers with no advisers, $2,000
Example:
30 authorised advisers = $8,500, or $283 per adviser
30 registered advisers/brokers = $10,000, or $333 per adviser/broker
200 authorised advisers/registered advisers/brokers = $20,000 (max) = $200 per individual
* If you consider your organisation is not represented by these membership types, e.g. a franchise group, please call FDR to discuss.
Complaint fees
| Level | Fee |
|---|---|
| Level One | |
|
Settlement reached |
$775 |
| Level Two | |
|
Settlement reached Complaint stopped or withdrawn |
$2,350 $2,175 |
| Level Three | |
| Settlement reached | $3,270 |
| Accelerated complaint * | $1,695 |
* An accelerated complaint occurs when the Scheme Adjudicator determines that the parties to the complaint will be best served by moving the complaint directly from Level 1 to Level 3 to be resolved.
The legislation that covers the scheme fees can be found on the New Zealand Legislation website.
Failure to pay fees:
FDR membership can be terminated for failure to pay membership and/or complaint fees.
