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 .

Published on , last updated on .