• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / FMA fees up but under budget as regulator reports deficit

FMA fees up but under budget as regulator reports deficit

October 4, 2015

Rob Everett: FMA chief
Rob Everett: FMA chief

The Financial Markets Authority (FMA) more than doubled the licensing fees collected from the industry over the latest annual reporting period.

According to the just-published FMA annual report for the 12 months to June 30 this year, the regulator collected $770,000 in licence fees from the industry, compared to $341,000 over the 2014 period.

While the licence fee revenue increase was expected as the Financial Markets Conduct Act (FMC) kicked in during the year, the figure fell short of FMA projections.

Industry-derived revenue was more than $900,000 under budget, primarily due to lower than forecast demand for FMC licences and auditor quality reviews.

“As [FMC licensing] is a new revenue stream, it has been difficult to anticipate demand for the various FMC licences,” the FMA report says.

In total the regulator pulled about $1.65 million from industry participants, including: $770,000 of licence fees; $343,000 in auditor quality reviews; $200,000 from superannuation schemes; and, $345,000 of “sundry revenue”.

The regulator underspent its $2 million litigation fund budget by about $600,000 during the year, the FMA accounts show.

“Litigation fund expenditure was below budget primarily because of the timing of litigation matters and the settlement of litigation brought by FMA proceedings,” the FMA report says.

The regulator launched civil action against Milford Asset Management portfolio manager, Mark Warminger, on market manipulation charges this July with a court date yet to be confirmed.

Overall, the FMA reported an almost $2.5 million deficit over the 2015 fiscal period – about $1.3 million more than forecast. The government cut about $1.5 million off the FMA budget in the 2015 year, supplying just under $26.2 million in the period compared to almost $27.8 million in 2014.

In the report introduction, Rob Everett, FMA chief, notes “a spike in spending this year as we began implementing the FMC Act”.

“Expenditure rose to $32.7 million from $29.4 million, driven by increased staff numbers (both permanent and contract) and by higher depreciation and amortisation costs,” Everett says in the report.

“The resulting deficit was covered out of accumulated funds but underlines a point recognised by the board and management – that careful prioritisation of resources is critical as the FMC Act is bedded in.”

Everett was paid between $530,000-540,000 during the year, the accounts show.

Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Most Recent Investment News

New Salt suite to spice up fund mix

January 17, 2021

Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman

January 17, 2021

Westpac follows ANZ with Northern Trust mandate…

January 17, 2021

… as Trust Management wins over another senior BT investment hand

January 17, 2021

Capital ventures into BlackRock’s ETF territory

January 17, 2021

Search by Keyword

Investment News

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021
  • Bitcoin: the nonsensical asset that makes sense for the times January 17, 2021

Investment News Archive

Most Popular Articles

  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020
  • AMP Capital NZ chief quits amid equities exodus offshore posted on August 28, 2020

Sponosored Content

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Nathan Field

Pandemic Baby Boom a Bust

Star-date 2020: it’s inflation Jim but not as we know it

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021
  • Bitcoin: the nonsensical asset that makes sense for the times January 17, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions