The Financial Markets Authority (FMA) has confirmed about 20 jobs are on the line as the regulator seeks to rein-in spiraling expenses.
As reported here, the FMA told parliament earlier this year it had embarked on a range of cost-cutting measures on government instructions to reduce spending.
In replies to wide-ranging parliamentary questions, the regulator said the government had not set any particular job-cut targets as part of the budget fat-trimming.
And FMA chief, Samantha Barrass, “has not been briefed or received advice on the fiscal implications of redundancies – voluntary or not – because the FMA is meeting its cost-saving target from its operational budgets including travel, workplace improvements, staff engagement, expert fees and contractor expenditure”, the official response notes.
But last week the regulator confirmed some 20 retrenchments were in train that would likely bring staff numbers down to levels reported at the end of June 2024.
The FMA reported almost 370 staff at the latest count compared to 351 on June 30 last year, up from 289 at the same date in 2023.
In a statement supplied to RNZ, the regulator says it has begun a focused consultation on proposed changes that mostly affect our enabling function, Transformation and Operational Delivery, and will have little impact our frontline supervision and monitoring teams”.
“Our focus is on working through the proposal with affected staff at this time.”
BusinessDesk reported last week that the FMA clocked up a deficit of more than $3.7 million during the six months to the end of last year – or $1.5 million over budget for the period.
The NZME-owned business news outlet also revealed the regulator had created several new high-end roles since Barrass was appointed three years ago including a ‘chief of staff’ pulling in up to $324,000 per year.
Despite the budget concerns, the FMA has assumed a host of new regulatory responsibilities over the last few years including an expanded financial advisory regime, climate-reporting, conduct of financial institutions (starting today, March 31) and an imminent new consumer credit oversight.
On the other side of the ledger, the FMA is due to lose its anti money-laundering responsibilities as the government prepares to consolidate the angst-ridden regulatory sector under the Department of Internal Affairs.