14 Sep 2010

New financial regulatory agency being set up

5:45 pm on 14 September 2010

New bills aimed at shoring up investor confidence in domestic financial markets will be tabled in Parliament on Tuesday.

The Financial Markets Authority, Regulators and KiwiSaver Bill and the Auditors Regulation and External Reporting Bill will be presented by Commerce Minister Simon Power.

The first bill will create a new super regulatory agency, the Financial Markets Authority, giving it new powers that existing regulators currently do not have.

It also aims to improve the governance and oversight of KiwiSaver schemes.

The second bill will give the FMA the power to oversee the regulation of auditors.

Both were recommendations made by the Capital Markets Development Taskforce last year, which came up with a range of ideas in a bid to shore up New Zealand's capital markets and regulation of the financial system.