Moonstone: 2009 Levies Announced

My colleague Paull Lawrence whom many of you know as the MC at Moonstone seminars and lately TV star at our electronic workshops have designed a wonderfully simple spreadsheet to help you calculate your 2009 levy. Even I can operate it. It also allows you compare your obligation to that of the previous two years.

According to Paull’s calculations the average increase in levies is around 9.5%%, with the exception of Long Term Category "A" FSPs where their representative levy has gone up by 30%% (from a lower base of R100). This applies to those with funereal interests.

It is very important that you ensure that your records, particularly in respect of representatives in service, are correct as at the end of August as this is the data that will be used to calculate the levy.

You can download the Moonstone Levy Calculator here and the relevant Board Notice here.

Those wishing to cancel extra licences need to do so before 31 August 2009 to avoid being liable for the levy on that licence.

In closing, I want to share an e-mail I received recently which again brought the reality of our current situation home to me:

“I wish to advise that I have cancelled my agency with the insurance company and also my FSB license. As such please unsubscribe me from the Moonstone Monitor.As a pensioner with onlya small number of clients I could no longer comply with the onerous requirementsand cost of the FSB. I will miss the insight and information and especially the wit, jokes and quotes from Paul. Thank you very much and may you be there for a long time to assist other agents inthis bureaucratic minefield.”

It is really a sad reality that so many experienced financial advisors are being forced out of the industry. In my response to this reader I said: “There is no doubt in my mind that the loss of people like yourself will cause far more harm to consumers than what will be prevented through the generation of piles of red tape.