tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, October 1st, 5:57PM

News

rss
Latest Headlines

Industry participants pick up more of FMA's tab

Industry participants will pay 83% of the cost of funding the Financial Markets Authority by 2022, documents released by the Ministry of Business, Innovation and Employment show.

Tuesday, August 4th 2020, 6:00AM 1 Comment

A Cabinet paper released by the ministry last week shows that participants are picking up the tab as the regulator’s budget increases significantly over the coming years.

The paper said the FMA has faced an expansion of its regulatory remit and broader cost pressures in recent years.

In April, Cabinet agreed to increase the FMA’s appropriation over three years to $60.805 million by 2022/23.

Cabinet agreed that the majority of this increase – $23.501 million per annum by 2022/23 – would be funded via an increase in the existing levy on financial service providers.

“This will enable the FMA to meet its existing operational pressures, be better prepared to respond to unexpected market developments or events, and be able to undertake effective and swift implementation of the new financial advice regime. It will also enable more cross-agency collaboration to improve coordination and efficiencies in the financial system,” the paper said.

As at 2019/20, the Crown contributed approximately 25% of the FMA’s funding, with the remaining 75% recovered via a levy on financial markets participants.

Cabinet confirmed through Budget 2020 that $1.304 million per annum of the $24.805 million increase would be funded by the Crown on an ongoing basis and the remaining $23.501 million would be met by industry through increases in the FMA levy.

With the fully phased-in increase in the FMA’s funding and the Crown’s contribution, the new split of the FMA’s operational funding will be approximately 17% Crown and 83% levy from 2022/23 onwards.

The funding and levy increases are now being phased in over three years instead of two.

“This is to lessen the impact of increased levies on financial services businesses at a time when revenues may be lower because of the economic impact of Covid-19. This adjustment complements the other lines of support the Government has been providing businesses to cushion the impact of Covid-19,” the paper said.

The paper also confirms that registered financial service providers that are financial advisers will pay a fixed levy of $400 when the changes are fully implemented. Licensed financial advice providers will pay a fixed levy of $340 with an additional $300 for every nominated representative and $1,180 if the advice provider gives advice on its own account.

Tags: FMA MBIE regulation

« FMA restarts regulatory activitiesFinancial Advice NZ ponders questions of experience in Trusted Adviser consultation »

Special Offers

Comments from our readers

On 7 August 2020 at 10:12 am All hat no cattle said:
unsurprisingly all the submissions on the FMA funding review fell on deaf ears, covered with muffs, buried in sand, underwater.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 3.85 3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 3.05 3.19 3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.69 2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.00 3.13 3.02

Last updated: 1 October 2020 9:07am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com