The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended in 2020 and 2022, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).
The FMA receives funding from the Crown and a proportion of our costs is recouped from industry through levies.
A financial markets participant falls within one or more levy ’class’, depending on what financial services they provide.
- A levy must be paid for every levy class the financial markets participant falls within. Levies are payable on the relevant leviable event as described in column 3 of Schedule 2 in the Regulations.
- Some levy classes have been split in order to recognise the variations in size and nature of different financial market participants.
- Most levies are paid when making an annual confirmation to the Registrar of Financial Service Providers (the Registrar).
- Most levies are payable to the Registrar, via the (FSPR). However, some levies are payable directly to the FMA. This is set out in column 4 of Schedule 2 in the Regulations.
- The following levy classes are invoiced directly by the FMA:
- Levy Class 8, Levy Class 8A, Levy Class 10, Levy Class 10A, Levy Class 13 and Levy Class 16.
Levy Class description
The table below provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.
||Persons making an application for registration on the Financial Service Providers Register
||Registered banks and licensed non-bank deposit takers
||Registered banks and licensed non-bank deposit takers that are required to hold a conduct licence
||Licensed insurers that are required to hold a conduct licence
||Licensed supervisors of debt securities and managed investment products in registered schemes
||Managers (of registered schemes)
||Persons who undertook trading activities on licensed markets, contributory mortgage brokers, trading financial products or foreign exchange on behalf of other persons (other than persons included in class 6A, 6B, 6C or 6D, authorised bodies that only provide the service under a market services licence held by a person in class 6A or 6D and DIMS wholesale providers) or licensed derivatives issuers
||Licensed discretionary investment management service (DIMS) retail providers
||Providers of a regulated client money or property service (as defined in section 6(1) of the FMC Act) other than persons included in class 6(a) or 6C
||Custodians and persons providing custodial services
||Crowdfunding service providers and peer-to-peer lending service providers
||Licensed financial benchmark administrators
||Licensed financial advice providers
||All other financial service providers that are not included in any of classes 2 – 6H
||Listed issuers (other than persons included in class 8A)
||Small listed issuers
||Lodgement of a product disclosure statement (PDS)
||Licensed market operators
||Licensed market operators that operate growth markets (other than persons included in class 10)
||FMC reporting entities that lodge financial statements (or group financial statements) and auditor’s reports
||Licensed overseas auditors
||Persons that apply for registration or incorporation under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008
||Persons that are registered or incorporated and required to make annual returns under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008
||Climate reporting entities
It is the responsibility of each financial service provider to ensure they are registered for the service(s) they provide and have paid the appropriate levies. As part of their online annual confirmation to the Registrar, they must select all of the applicable classes to determine the levies payable and confirm the information they have provided is true, correct and complete.
Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act) it is an offence to:
- provide services you are not registered for or state you are registered for a particular financial service when you are not
- make a representation relating to any document or information required by the FSP Act or its regulations knowing that it is false or misleading, or omit any matter knowing such omission is false or misleading.
These offences could result in a fine of up to $100,000 and/or imprisonment for individuals, and a fine of up to $300,000 for businesses.
It is also an offence under the FSP Act to fail to notify the Registrar if any of the details contained on the FSPR are no longer correct. Failure to notify could result in a fine of up to $10,000.
We have discretionary power to waive a levy (in whole or part).
We will only do so if we are satisfied that the circumstances or characteristics of the financial markets participant are exceptional when compared with the circumstances or characteristics of others in the same class, so that it would make it inequitable for the person to pay the levy. The threshold is deliberately high.
The waiver power is not intended to be used to revisit settled policy positions.
Once we receive a waiver application and the fee, we will assess it. If we decide to grant the waiver, we must notify our decision in the Gazette, and publish the decision and reasons for it on our website.
How to apply for a levy to be waived
You will need to email the following information to [email protected] with the subject line ‘Levy waiver application’.
- Name of person or entity applying for the waiver.
- Contact person for correspondence concerning the application including address, phone number and email.
- Indicate the persons/entity who will receive the benefit of any waiver granted.
- Specify which class(es) you seek a waiver from and whether a waiver is sought from the full levy or part and the amount thereof.
- Let us know your preferred date for any waiver to take effect.
- Explain why the waiver should be granted and why your circumstances are exceptional when compared with others in the same class.
- Provide all relevant facts in support of your application.
- Explain any regulatory benefit of FMA granting the waiver.
- Give details of any previous contact with officials (including their names) at FMA or MBIE (including the Companies Office) on the matter.
How to pay your waiver application fee
You can pay by electronic deposit or internet banking. Payment can be made by applicants or law firms making applications on behalf of their clients.
The person paying the application fee must be the person who pays the subsequent fees and costs. For example, if a law firm pays the application fee, that law firm must also pay any additional fees and costs.
We recommend if law firms apply for waivers on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting a waiver application.
||How to pay
|Electronic deposit or internet banking
||Where bill pay is available please select ‘Financial Markets Authority - Other'
Otherwise, our bank details are:
Account name: Financial Markets Authority
Account number: 03-0584-0198005-000
|To ensure we process your payment correctly please provide the following information:
Particulars: Payer’s name*
Reference: Applicant’s name
You do not need to forward a hard copy of your application if paying electronically
* This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs. Payment by credit card is not available for this application process.
What are the fees
- A payment of $1,265 should accompany each application.
- This covers the application fee of $115 set out in the Financial Markets Authority (Fees) Regulations 2011 and an advance of $1,150 (including GST) for fees and costs to be incurred.
- These regulations set out charging rates of $230 (including GST) per hour for time spent by FMA Board members and $178.25 (including GST) per hour for time spent by FMA staff.
- These regulations are set by MBIE.
How long does it take
- Once we have been provided with all relevant information, it generally takes around six weeks to process an application.
- This may be longer if any policy questions arise.
- If your application is urgent, please provide the date you need the decision by.
- You must also provide reasons for requesting urgent consideration.