Sean Hughes, the CEO of New Zealand’s Financial Markets Authority (FMA), will stand down at the end of the year.

He has led the regulator since it was formed three years ago but has announced he will not seek a second term.

“Having delivered on my primary task to design, build and implement the strategic and operational platform for the FMA, I have decided to complete my contract this year and look to identify my next challenge,” he said.

Chairman Simon Allen says the board is disappointed but respects Mr Hughes’ decision.

“The FMA’s regulatory scope is set to further expand from next year with the introduction of the Financial Markets Conduct Act,” he said. “The timing is well aligned for the next CEO to advance this work.”

The board expects to appoint a successor by the end of the year.

The FMA also announced the appointment of Sue Brown as its new Head of Strategy, Innovation and Engagement, charged with leading the organisation’s change management program.

She was previously head of primary regulatory operations.