1. Compliance
  2. Fees and levies
  3. Levies and waivers

Levies and waivers

Levies 

New fees and levies now in effect

Changes to the levies came into effect on 1 July 2017. New categories of levies were introduced and some levies were increased.

To see the new levies, please visit MBIE's website.

The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended by the Financial Markets Authority (Levies) Regulations 2017, 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.

Classes

A financial markets participant falls within one or more ’class’, depending on what financial services they provide.

A levy must be paid for every 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) and are retrospective to cover the regulatory costs of the previous year.

Most levies are payable to the Registrar, via the Financial Service Providers Register (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 classes are invoiced directly by the FMA: Class 8, Class 10, Class 13, and, if the market participant is not registered on the FSPR, Classes 4 and 5.

The table below provides a high-level description of each class. For the full description of classes, see Schedule 2 in the Regulations. 

Class

Description

1

Persons making an application for registration on the Financial Service Providers Register

2

Registered banks and licensed non-bank deposit takers

3

Licensed insurers

4

Licensed supervisors of debt securities and managed investment products in registered schemes

5

Licensed managers (of registered schemes)

6

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), licensed derivatives issuers, or authorised financial advisers

6A

Discretionary investment management service (DIMS) retail providers

6B

Registered brokers (as defined in the Financial Advisers Act 2008), other than persons who undertook trading activities on licensed markets, registered custodians and persons providing custodial services

6C

Registered custodians and persons providing custodial services

6D

Crowd funding service providers and peer-to-peer lending service providers

7

All other financial service providers that are not included in any of classes 2 – 6D

8

Listed issuers

9

Lodgement of a product disclosure statement (PDS)

10

Licensed market operators

11

FMC reporting entities that lodge financial statements (or group financial statements) and auditor’s reports

12

Accredited bodies

13

Licensed overseas auditors

14

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

15

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

Offence

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 compliance@fma.govt.nz with the subject line ‘Levy waiver application’.

  1. Name of person or entity applying for the waiver.
  1. Contact person for correspondence concerning the application including address, phone number and email.
  2. Indicate the persons/entity who will receive the benefit of any waiver granted.
  3. 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.
  4. Let us know your preferred date for any waiver to take effect.
  5. Explain why the waiver should be granted and why your circumstances are exceptional when compared with others in the same class.
  6. Provide all relevant facts in support of your application.
  7. Explain any regulatory benefit of FMA granting the waiver.
  8. 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, internet banking or cheque. 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.

Payment option

How to pay

Additional information

Electronic deposit or internet banking

Where bill pay is available please select ‘Financial Markets Authority - Other’

Otherwise our bank details are:

Bank: Westpac

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*

Code: Waiver

Reference: Applicant’s name

You do not need to forward a hard copy of your application if paying electronically

Cheque

Forward to:
Waivers
FMA
Level 2
1 Grey St
PO Box 1179
Wellington 6140

Please make the cheque out to ‘Financial Markets Authority’

Include a hard copy of your application

* 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.

Granted waivers

Southern Cross Benefits Limited – partial waiver – May 2015

Craigs Investment Partners Self-Select Schemes - waiver of part of the FMA levy – Oct 2016

i-Select Superannuation Scheme - waiver of part of the FMA levy – Nov 2016

Portfolio Superannuation Fund - waiver of part of the FMA levy – Nov 2016