Consultation on 2021 Financial Markets Authority funding and levy

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Submissions due: 07 November 2021, 5pm

MBIE and the Financial Markets Authority (FMA) are consulting on proposed changes to the FMA’s funding and the FMA levy.

About the consultation

The FMA’s funding and the FMA levy were last reviewed in 2019/2020. Since then, the FMA’s remit is expanding to cover 3 new legislative regimes: Conduct of Financial Institutions (CoFI), Insurance Contract Law (ICL) and Climate-Related Disclosures (CRD).

A summary of the 3 regimes is set out below.

  • Conduct of Financial Institutions (CoFI) Regime: This regime will require all registered banks, licensed insurers and licensed non-bank deposit takers that provide relevant services and associated products to consumers to be licensed by the Financial Markets Authority. It will also require these institutions to have “fair conduct programmes” in place across their business that are designed to ensure compliance with a principle to treat consumers fairly.

  • Insurance Contract Law (ICL) Regime: This regime will reform insurance contract law so that insurance better meets consumer and insurer expectations. This includes strengthening protections for consumers against unfair contract terms in insurance contracts and measures to assist consumers understanding of insurance policies.

  • Climate-Related Disclosures (CRD) Regime: This regime will make climate-related disclosures mandatory for affected reporting entities under the Financial Markets Conduct Act 2013.

The FMA’s funding from 2022/2023 onwards is insufficient to enable it to meet its new legislative mandate under these regimes.

What we are seeking feedback on

The discussion document seeks feedback on:

  • 2 different funding options under each of the CoFI, ICL and CRD regimes
  • the approach to implementation of the CoFI regime, including the proposed licensing window and
  • the options for recovering the FMA’s funding, including proposed changes to the FMA levies paid by financial market participants who are in scope of the CoFI, ICL and CRD regimes.

Below are the documents to read and the template for you to complete if you would like to share your views with us.

How to make a submission

Send your submission:

  • as a Microsoft Word document or searchable PDF to FMALevyReview@mbie.govt.nz (preferred), or

  • by mailing your submission to:

    Financial Markets Policy
    Building, Resources and Markets
    Ministry of Business, Innovation & Employment
    PO Box 1473
    Wellington 6140
    New Zealand

Please direct any questions that you have in relation to the submissions process to FMALevyReview@mbie.govt.nz.

Release of information

MBIE intends to upload copies of submissions received to MBIE’s website at www.mbie.govt.nz. MBIE will consider you to have consented to uploading by making a submission, unless you clearly specify otherwise in your submission.

If your submission contains any information that is confidential or you otherwise wish us not to publish, please indicate this on the front of the submission, with any confidential information clearly marked within the text.

Submissions remain subject to request under the Official Information Act 1982. Please set out clearly in the cover letter or e-mail accompanying your submission if you have any objection to the release of any information in the submission, and in particular, which parts you consider should be withheld, together with the reasons for withholding the information.

MBIE will take such objections into account and will consult with submitters when responding to requests under the Official Information Act 1982.

Private information

The Privacy Act 2020 establishes certain principles with respect to the collection, use and disclosure of information about individuals by various agencies, including MBIE.

Any personal information you supply to MBIE in the course of making a submission will only be used for the purpose of assisting in the development of policy advice in relation to this review.

Please clearly indicate in the cover letter or e-mail accompanying your submission if you do not wish your name, or any other personal information, to be included in any summary of submissions that MBIE may publish.