The new Financial Markets Authority will have long term funding 44 per cent higher than current regulators, including the much-criticised Securities Commission.
The FMA starts work on May 1, and will have an initial budget in 2011/12 of $24 million, rising to $28 million the following year, and after that
settling back to $26 million a year - some 44 per cent more funding than the $18 million annual budget for current regulators, Commerce Minister Simon Power announced.
Next year's increase reflects the emphasis on market intelligence, investigation and enforcement, and some additional transition costs.
"This budget shows that the government is committed to ensuring the FMA has the right tools to keep our capital markets working for mum and dad investors," said Power.
"With this level of funding it can focus on proactively monitoring and enforcing regulation of our financial markets."
The funding will be a combination of Crown fundingand third-party funding, where services are provided to market participants for their individual or group benefit.
Third-party funding will be sourced from fees and levies paid under the new legislation, with a discussion document on the proposed fees and levies regime due out shortly, and will include proposals relating to the charges applied by the Companies Office, the Insolvency and Trustee Service, and the External Reporting Board.
