FMA levy misses the mark

FMA levy misses the mark

The New Zealand Bankers’ Association today expressed disappointment at the government’s announcement on the way it intends to levy the financial sector to fund the Financial Markets Authority.

The Bankers’ Association has no issue with an industry contribution to FMA costs. The problem lies in how the FMA levy is apportioned across the industry. One of the principles of the levy model design was that levies be proportional to benefits received. The approach announced today does not reflect that principle well.

“Banks are well-regulated responsible lenders operating at the top end of the market.

“The levies should better reflect the costs and benefits where they actually fall,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“The FMA has an important job to do to crack down on the irresponsible end of the market. The benefits to already responsible participants are not at all evident compared to the costs they are being asked to shoulder,” added Hope.

ENDS

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