After consultation in 2016, Cabinet has approved a proposal for the Financial Markets Authority (FMA) to alter the tiered frameworks for several of the FMA’s levies.
The changes are substantial and alter the tiers for licensed insurers, and for managers and trustees in respect of securities.
A larger body of total managed assets now attracts more fees, but the fees may actually decrease where the assets under management are fewer. This update to the levy model is intended to reflect the players in financial markets and the activities they undertake. Financial market participants undertaking similar activities which pose similar risks will also now generally pay the same levy. Overall the new levy model is envisioned to reflect fairly the proportional benefit to each market participant in relation to the FMA’s activities.
The new levies will begin from 1 July 2017.