A "super regulator" for financial markets had failed to inhibit Wall Street institutions from failing and would be no replacement for a thrifty investment by the public, warns Roger Partridge, Chairman of Bell Gully.

The head of the board charged with the establishment of New Zealand's new super-regulator posts that the authority won't serve as a backstop to poor investment decisions.

Securities Commission member Simon Botherway - appointed last week to chair the nine-member establishment board tasked with setting up the Financial Markets Authority - believes investments could pose their investors at a huge risk.

However, Commerce Minister Simon Power, on April 28, uncovered that the Government would form a new body in a view to regulate New Zealand's financial markets, extending a hope.

Mr. Partridge, quoted, "Consolidating these powers in a well-resourced super-regulator could well lead to a more coherent and effective approach. However, we need to remember that the United States' 'super regulator' - the Securities Exchange Commission - did not stop financial institutions failing on Wall Street."

Mr. Power reveals authority would completely concentrate on "visible, pro-active and timely" implementation.

However, it is highlighted that with the emergence of the new institution, the risk of 'over-regulating' could also crop up - something Parliament needs to be keeping a track of.