The new Financial Markets Authority will have a budget of $24 million in its first year of operation.
The FMA will take over work currently carried out by the Securities Commission, the Ministry of Economic Development and the NZX, from next month. Its budget has now been approved by the cabinet.
The FMA's budget will rise to $28 million in its second year to reflect extra transition costs, market intelligence, investigation and enforcement, before dropping to about $26 million in its third year.
Commerce Minister Simon Power says that's about 44% more than what regulators get at the moment, which will enable the FMA to proactively monitor and enforce the financial markets.
The funding will be a combination of Government money, payment for specific services and fees and levies paid by market participants.
Mr Power says a discussion document outlining the proposed fees and levies, will be published shortly.
