Commerce Minister Simon Power in a speech late yesterday posted that the Financial Markets Authority is reported to function early next year, taking over all the work of the Securities Commission, as the Government is desperate to regain investor confidence hampered by the finance company downturn and global financial turmoil.

The new agency will operate to absorb the monitoring roles held by the Ministry of Economic Development and the disciplinary powers of NZX Ltd., operator of the nation’s stock exchange.

“The new agency 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”, Power added.

The new regulator - which will be named as the Financial Markets Authority (FMA) - will take over a vast range of existing regulatory powers and functions including those powered by Securities Commission and some currently operated by the Companies Office and its National Enforcement Unit.

In addition, this consolidation of functions and powers into the new authority is aimed to completely focus on surveillance and enforcement, which will play a vital factor in boosting the lost confidence.