Financial Markets Authority funding

This page explains how the Financial Markets Authority (FMA) is funded, and the includes information about the 2019/20 review and consultation on proposed changes to its funding following a review in 2016.

How the FMA is funded

The Financial Markets Authority (FMA) is funded through a combination of Crown funding and a levy charged to financial market participants.

The levies are set in the Financial Markets Authority (Levies) Regulations 2012(external link). These regulations were amended in 2017 following a review of the FMA’s funding and levies and again in 2019 to make administrative changes needed ahead of the new financial advice regime.

The FMA also charges fees for certain services that it completes for market participants.

These fees are set in the Financial Markets Authority (Fees) Regulations 2011(external link) and the Financial Markets Conduct (Fees) Regulations 2014(external link).

2019/20 funding and levy review

In 2019, MBIE and the FMA initiated a review of the FMA’s funding requirements and the FMA levy. In addition, MBIE commissioned an independent report to assess different funding options for the FMA and the FMA’s efficiency and effectiveness. The review was commenced in response to cost pressures resulting from the FMA’s evolving regulatory environment and remit. The objectives of the review are to:

  • review the FMA’s funding requirements to ensure it can continue to meet its statutory functions under the financial markets legislation it administers (including the new financial advice regime), and can operate as a credible and effective financial markets regulator
  • consider the level of Crown and third-party levy funding that is appropriate to reflect the FMA’s role in serving the public good
  • ensure that the FMA levy settings remain appropriate and proportionate to the benefit levy payers receive from operating in well-regulated financial markets.

MBIE and the FMA are consulting on proposed changes to the FMA’s funding and the FMA levy.

Make a submission or find out more

2016 review of FMA funding, fees and levies

In October 2016, Cabinet approved a number of changes to the funding of the Financial Markets Authority, the External Reporting Board and the Companies Office as follows:

  • additional funding of $9.816 million for the FMA
  • changes to the structure of the FMA levy
  • return historical over-recovery of the existing FMA and External Reporting Board levies and revise levies payable to incorporate new projected volumes of levy payers
  • a number of changes to Companies Office fees.
Last updated: 13 February 2020