The NZ Government will fast-track the development of a new super-regulator to oversee financial markets following the failure of a succession of local finance companies.

The Financial Markets Authority (FMA) will begin operations early next year, taking over all the duties of the NZ Securities Commission as well as many of the monitoring roles of the Economic Development Ministry and the disciplinary powers of NZX Ltd, which operates the stock exchange.

Commerce Minister Simon Power announced the initiative last week, saying it is “at the centre of the Government’s drive to restore the confidence of mum and dad investors in our financial markets”.

The FMA “will enforce securities, financial reporting, and company law as they apply to financial services and securities markets”.

“It will also regulate and oversee trustees, auditors, financial advisers and financial service providers, including people who offer investments.”

Mr Power says regulators have previously been unable to prevent the loss of investor savings, damaging consumer confidence.

Legislation to set up the FMA will be fast-tracked through Parliament and a board appointed to design the structure of the new regulator.