8 Apr 2011

Laws reforming financial sector passed

9:03 am on 8 April 2011

A new watchdog will regulate the financial markets after Parliament on Thursday unanimously passed six bills reforming the sector.

The Financial Markets Authority (FMA) will take over the functions of the Securities Commission and the Government Actuary.

Commerce Minister Simon Power says regulation will restore investor confidence which has been damaged by the global financial downturn and the failure of a series of financial companies.

Mr Power says the FMA will have the power to take action against company directors who breach their duties, and hold trustees and statutory supervisors to account.

The authority will begin operating on 1 May.