The Government stated about its update on the progress with its proposed action plan for capital markets, yesterday. The progress report indicates that the Government's action plan is largely on track, although priority is being given to some of the Capital Market Development Taskforce's recommendations at the expense of others.

The Government has also announced its plans for Establishment Board of the new integrated market conduct regulator, the Financial Markets Authority.

The Board comprises nine members and will be chaired by Simon Botherway. It also includes representatives of the current regulatory bodies, the Securities Commission, the Registrar of Companies and NZX.

The Government has given the Board responsibility for setting the strategic direction of the FMA, developing a statement of intent and an organisational structure and a work plan to give effect to the strategic direction of the FMA.

Botherway said the powers of the new FMA would be very important in allowing it to take action at the top of the cliff rather than at the bottom.

The progress report also stated about the postponement of the planned April release of a discussion document for the review of the Securities Act. It has been now been delayed until June.

The Cabinet’s initiative for fast-track implementation of a centralised website for disclosure documents is expected to take place by the end of 2010.

The Government has also delayed the Changes to the Overseas Investment Act. A report is now expected to be provided to Cabinet by the end of June.

In addition to all this, FMA will be given the sole responsibility for enforcing securities, financial reporting and company laws.