The New Zealand Government has given the new Financial Markets Authority (FMA) a $NZ24 million ($17.6 million) budget.

In the 2013/14 financial year the budget will increase to $NZ28 million ($20.6 million), but will then drop back to an annual budget of $NZ26 million ($19 million).

NZ Commerce Minister Simon Power says the higher budget in the next financial year will cover the cost of increased market intelligence, investigation and enforcement as well as some 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,” he said.

“With this level of funding it can focus on proactively monitoring and enforcing regulation of our financial markets.”

Funding for the FMA will come from the Government, but fees and levies will also eventually become part of the budget.

Mr Power says a discussion paper on the proposed fees and levies will be issued shortly for public comment.

This paper will also contain proposals for fees and levies for the Companies Office, the Insolvency and Trustee Service and the External Reporting Board.