New Zealand will get a new financial markets “super-regulator” next year to enforce the country’s securities laws and financial reporting rules.

The all-powerful Financial Markets Authority (FMA) will also regulate financial advisers, financial service providers, and auditors.

Commerce Minister Simon Power said the FMA will consolidate functions currently spread across the Securities Commission, government ministries, and the country’s stock exchange.

The creation of the new regulator is aimed at restoring confidence in New Zealand’s financial markets, Power said.

He added, “It has become increasingly clear to me that one of the missing pieces in the regulatory landscape is a single regulator focused on proactively monitoring and enforcing securities law. On too many occasions in finance company collapses we heard of investors' money falling to the floor through the cracks between regulators. This has damaged investor confidence, and if we are to restore that confidence we need to make changes.”

Power said the government will fast-track the legislation needed to create the FMA and have it up and running early in 2011.

The government had been planning to revamp New Zealand’s Accounting Standards Review Board to make it responsible for accrediting professional accounting bodies, reviewing the quality of auditor practices, setting minimum licensing standards, and enforcement. But the FMA will now do that work.

The Accounting Standards Review Board will still change its name to the External Reporting Board and will be responsible for making auditing standards.

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