This is the forgotten fee. Yet, as it has not yet been set, and there are many fewer AFAs than originally anticipated, it should be getting some attention. There have been a number of attempts to estimate what it will be, but all cost-based attempts will run into two questions, which make any further step pure guesswork. Those questions are:
1. How will the split in operational levy between companies and advisers be allocated?
2. Will the FMA seek full recovery in the first year, or effectively phase in recovery over a number of years, to allow for some settling down (or up, I suppose) of the actual costs and numbers of participants?
I don't fancy the job of the FMA on this one, no fee will be gladly accepted. But the industry has only narrow grounds for arguing over the fee, and in the end, it will simply be accepted. It has to be.