The Financial Markets Authority (FMA) has opened a consultation on its funding options and levies to regulate the new financial advice regime and respond to cost pressures within its current limit.

Sharon Corbett, manager of financial markets at the Ministry of Business Innovation and Employment (MBIE), said the FMA and MBIE are both consulting on proposed options to ensure that the regulator’s funding is proportionate to its workload.

“As the financial markets regulator, the FMA plays a crucial role in ensuring New Zealand’s financial markets are fair, efficient and transparent,” Corbett said. “The FMA’s funding was last reviewed in 2016. Since then, the FMA’s remit has broadened and now is the right time to look at its funding.”

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Corbett explained that FMA’s preparation for the new financial advice regime is expected to improve access to high-quality financial advice for all Kiwis, which will come into effect in June 2020.

“An MBIE-commissioned review by PwC noted that the FMA is a high-performing organisation that delivers a lot for the funding it receives, with good alignment between its activities and its main statutory objective,” she said.

“We want to find the right balance between ensuring the FMA has the resources it needs to continue delivering those benefits in the face of future demands, while setting levies that are fair and proportional. Consultation with industry plays a critical role in achieving this balance.”

The consultation ends on February 28, 2020.