New levies for some FSPs from September
New Financial Markets Authority (FMA) levies come into force on 1 September 2022
New FMA levy classes are being introduced to provide the FMA with the funding it needs to oversee 2 new legislative regimes — the Conduct of Financial Institutions and Climate-related Disclosures.
Conduct of Financial Institutions (CoFI) levies
The levies for CoFI affect some financial service providers and will be collected by the Companies Office from 1 September 2022 as part of the annual confirmation filing on the Financial Service Providers Register.
There will be 2 new classes for registered banks, licensed non-bank deposit takers and licensed insurers that ARE required to be licensed in relation to the market service of acting as a financial institution. There will also be changes to the descriptions for 2 existing levy classes.
New Class 2A — Registered banks and non-bank deposit takers (NBDTs)
Registered banks and licensed non-bank deposit takers that ARE required to be licensed in relation to the market service of acting as a financial institution. The amount you'll pay depends on the total assets of your bank or NBDT.
| Total assets | FMA levy excl GST |
FMA levy incl GST |
|---|---|---|
| Exceed $50 billion | $1,845,000 | $2,121,750 |
| Exceed $10 billion but not $50 billion | $560,000 | $644,000 |
| Exceed $2 billion but not $10 billion | $147,000 | $169,050 |
| Exceed $1 billion but not $2 billion | $62,000 | $71,300 |
| Exceed $500 million but not $1 billion | $22,600 | $25,990 |
| Exceed $40 million but not $500 million | $11,600 | $13,340 |
| Not more than $40 million | $3,320 | $3,818 |
New Class 3A — Licensed insurers
Licensed insurers that ARE required to be licensed in relation to the market service of acting as a financial institution. The amount you pay depends on your annual gross revenue from premiums (GPR).
| Annual GPR | FMA levy excl GST |
FMA levy incl GST |
|---|---|---|
| Exceed $1 billion | $675,000 | $776,250 |
| Exceed $500 million but not $1 billion | $494,000 | $568,100 |
| Exceed $250 million but not $500 million | $179,000 | $205,850 |
| Exceed $100 million but not $250 million | $123,000 | $141,450 |
| Exceed $50 million but not $100 million | $63,000 | $72,450 |
| Exceed $10 million but not $50 million | $23,000 | $26,450 |
| Not more than $10 million | $6,040 | $6,946 |
Updated descriptions for 2 levy classes
From 1 September there will also be changes to the descriptions for 2 existing classes, but the levies for these existing classes aren't changing:
- Class 2 — Registered banks and licensed non-bank deposit takers that ARE NOT required to be licensed in relation to the market service of acting as a financial institution
- Class 3 — Licensed insurers that ARE NOT required to be licensed in relation to the market service of acting as a financial institution.
Climate-related Disclosures (CRD) levies
The levies for CRD, which also come into force on 1 September 2022, affect climate reporting entities. Initially the FMA will collect this levy until climate statements are required to be filed (expected to be in 2024). From then onwards, the Companies Office will collect this levy as part of the climate statement filing.
There is one new class:
- Class 16 — Climate reporting entities
Background to these levy changes
The change is part of the Government’s plan to increase the FMA’s budget to help fulfil its responsibilities as the financial markets’ regulator.
You can read more about the levy changes on the Ministry of Business, Innovation and Employment website.
For more information regarding the climate related disclosures regime, visit the FMA website .