Our submission focused on the proposed funding and cost recovery model as it applied to the incoming climate-related financial disclosures regime.

We are supportive of the Ministry of Business, Innovation & Employment’s review of the Financial Markets Authority’s (FMA) funding, and acknowledge that the FMA’s role, as required by the Government, is increasing in size and complexity. The FMA must be adequately funded to deliver on its mandate.  It is vital that the FMA’s funding reflects both its expanded regulatory remit and the growing complexity of that remit.

We support Option 1 with respect to the climate-related financial disclosures regime. We believe that this option provides the most appropriate level of funding for the FMA, particularly given the initial need to support entities captured by the regime and build capability within the agency. We also encourage MBIE to undertake a review and assessment of whether this option remains appropriate following implementation of the regime. 

We believe that the Crown should continue to fund a portion of the FMA’s appropriation (that is, Option B). We believe this split fairly balances the public good element of the FMA’s operations and the private benefit to levy payers of fair, efficient and transparent financial markets.