Next step for 'super regulator'

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Legislation to replace the Securities Commission with a new "super regulator" will be introduced today.

The Financial Markets (Regulators and KiwiSaver) Authority Bill will give the Financial Markets Authority (FMA) new powers in addition to those already handled by the Securities Commission and other regulatory agencies.

The Auditor Regulation and External Reporting Bill, which will also be introduced today, will strengthen regulation of auditors.

"This is the next important step in the Government's legislative response to regulatory oversight of financial markets, all designed to restore investor confidence," said a spokesman for Commerce Minister Simon Power.

It is expected the legislation will be passed in time to allow the FMA to begin operating early next year.

The body's establishment board is expected to give its draft statement of intent to Power by the end of this month and a shortlist of candidates for chief executive is expected shortly.