Financial Markets Conduct (Fees) Amendment Regulations 2014

2014/250

Coat of Arms of New Zealand

Financial Markets Conduct (Fees) Amendment Regulations 2014

Rt Hon Dame Sian Elias, Administrator of the Government

Order in Council

At Wellington this 28th day of July 2014

Present:
Her Excellency the Administrator of the Government in Council

Pursuant to section 67 of the Financial Markets Authority Act 2011 and sections 548(1)(o) and 552 of the Financial Markets Conduct Act 2013, Her Excellency the Administrator of the Government makes the following regulations, acting—

  • (a) on the advice and with the consent of the Executive Council; and

  • (b) on the recommendation of the Minister of Commerce made in accordance with section 549 of the Financial Markets Conduct Act 2013.

Regulations

1 Title
  • These regulations are the Financial Markets Conduct (Fees) Amendment Regulations 2014.

2 Commencement
  • These regulations come into force on 1 August 2014.

3 Principal regulations
4 Schedule amended
  • In the Schedule, Part 1, clause 1, item relating to acting as a provider of a discretionary investment management service, replace $3,565 plus fee charged on the hourly basis specified in Part 2 for hours exceeding 25 with $2,139 plus fee charged on the hourly basis specified in Part 2 for hours exceeding 15.

Michael Webster,
Clerk of the Executive Council.


Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 August 2014, amend the Financial Markets Conduct (Fees) Regulations 2014 (the principal regulations). The principal regulations provide for the Financial Markets Authority (the FMA) to charge fees and recover costs in relation to the licensing of market service providers (for which the FMA is responsible) under Part 6 of the Financial Markets Conduct Act 2013 (the Act). The fees payable on an application for a market services licence are made up of—

  • a specified amount (which differs according to the type of market service that the applicant wishes to provide) payable at the time of filing the application; and

  • a fee charged at an hourly rate for work done on the application beyond the number of hours specified in the regulations for that type of application. However, the FMA may only require an applicant to pay this fee if it has already notified the applicant, in writing, that the fee will or may be payable and given the reasons why the number of hours spent on the application has, or is likely to, exceed the specified number. And it may only require the applicant to pay for hours (beyond the specified number) of work carried out on assessing the application after that notice was given.

The amendment replaces the fee of a specified amount payable when filing an application for a market services licence to cover (market services that are or include) acting as a provider of a discretionary investment management service (DIMS). Section 388 of the Act, which requires a provider of a DIMS to hold a market services licence that covers that service, is not yet in force. But a person can, and has since the commencement (on 1 April 2014) of the principal regulations been able to, apply for such a licence. The replacement fee, which applies only to an application of this kind filed on or after 1 August 2014, recognises that the FMA will likely spend less time than earlier estimated on some simple applications.


Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 31 July 2014.

These regulations are administered by the Ministry of Business, Innovation, and Employment.