The Financial Markets Authority (FMA) will grow staff numbers by more than 25 per cent over the next four years, adding about 100 people to the mix under a “change programme” flagged in the regulator’s latest ‘statement of performance expectations’.
As at the 2021 reporting date, the FMA had 242 permanent employees and a further 21 contractors or others working on an ad hoc basis.
But with a truckload of new legislated duties heading its way the regulator is scaling-up to meet demand. In addition to the just-passed financial institution conduct law, the FMA is about to take on oversight of climate-reporting legislation while also bracing for full-implementation of the adviser-licensing regime.
“The FMA is undergoing a significant expansion in its remit to deliver the new conduct of financial institutions regime and the climate related disclosure regime. The change programme aims to ensure the FMA has the most efficient and effective operating model, both for our existing and expanding remit,” a spokesperson for the regulator said. “The costs for the change programme have not been fully scoped and these will be reported in due course in our financial statements.”
Nonetheless, some of the up-staffing costs have been factored into the forecast budget included in the FMA statement of performance expectations for the 2022/23 reporting year.
Total staff costs are set to jump almost $11 million over the coming fiscal year to reach just shy of $50 million while ‘other operating expenses’ rise to over $13 million compared to $9.2 or so during the previous 12-month period.
However, most of the budget boost covers a return to quasi-normality at the regulator following the two years of COVID-related workplace disruption.
For the 12 months to the end of June next year, FMA expenses are projected to top $73 million (for a budget deficit of about $1.2 million) against $58 million for the 2021/22 annual period.
The regulator’s ‘investigation and enforcement’ function will receive the biggest overall budget increase with spending rising from $11.3 million last year to almost $18 million for the 12 months to June 30, 2023.
As well as stocking up on back-office and frontline staff, the FMA, now headed by Samantha Barrass, is boosting its executive ranks with a new chief economist role to be established. The regulator is also in the throes of filling several senior vacancies following a rash of top-level resignations this year.