Wednesday 20th April 2011
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Commerce Minister Simon Power has announced Cabinet approval for the operating budget for the Financial Markets Authority (FMA), which begins operations on May 1.
The budget for 2011/12 will be $24 million, increasing to $28 million in 2013/14 to reflect the emphasis on market intelligence, investigation, enforcement and additional transition costs.
The budget for 2014/15 and beyond will be around $26 million – an increase of around 44% on the $18 million for the current regulators.
Power said the FMA needed to be adequately funded to conduct its functions effectively.
"This budget shows that the Government is committed to ensuring the FMA has the right tools to keep our capital markets working for mum and dad investors," he said.
"With this level of funding it can focus on proactively monitoring and enforcing regulation of our financial markets."
The funding will be a combination of Crown funding, to reflect broader public good, and third-party funding, where services are provided to specific market participants for their individual or group benefit.
Third-party funding will be sourced from fees and levies paid under the new legislation.
Power said he intends to publish a discussion document shortly seeking public comment on the proposed fees and levies.
The discussion document will also contain fees and levy proposals for the Companies Office, the Insolvency and Trustee Service, and the External Reporting Board.
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