Teamwork key for super regulator's new chief

Sean Hughes takes the helm of the super-regulator after working in Australia. Photo / Paul Estcourt

Market leaders say the new super regulator chief seems to have all the right credentials but his success will hinge on how well he works with the chairman and the market itself.

Ex-pat New Zealander Sean Hughes was yesterday revealed as the new chief executive-designate of the Financial Markets Authority.

Hughes, who comes from a role where he oversees the regulation of Australia's 300 largest listed companies at the Australian Securities and Investments Commission (Asic), will officially start his new job in January. The FMA will come into force in April.

FMA establishment board chairman Simon Botherway said they had undertaken a global search to fill the role and were pleased to be bringing "one of our own home".

Hughes said the role was too good to pass up.

"You don't get many opportunities like this in a lifetime - for a regulator to be talking about exciting things. All the right elements are here. For my family and myself it's an opportunity to come back to my country of birth."

Hughes said his first priority would be to address investor confidence.

"There is a sense of bewilderment in the investment community as to what went wrong."

Hughes said there was similar confusion among capital market participants.

"We want to grow the confidence on both sides of the equation."

Hughes said the close relationship between New Zealand and Australia meant he was very aware and mindful of what had happened in the New Zealand market.

Fisher Funds managing director Carmel Fisher said on the face of it Hughes appeared to be the perfect candidate.

"He has compliance experience and the ability to present to politicians and the public - everything you would expect."

Chapman Tripp partner Roger Wallis said the appointment was a milestone for the FMA.

"His success or failure will hinge on his working relationship with the chairman and engagement with the marketplace."

Wallis said he would now look to other milestones including the appointment of the chair, the board itself, the strategic plan and confirmation of government funding and resources.

Applications for the chairman's role close on October 25. Botherway said he expected the chairman and board to be appointed in either March or April close to when the FMA began operating.

SEAN HUGHES

Financial Markets Authority chief executive-designate

Age: 44

Born: Palmerston North

Education: Bachelor of Laws and Bachelor of Arts from the University of Canterbury, Master of Law from Cambridge University in the UK.

Career: December 2008 to present - senior executive leader at Asic.

* 2007 to 2008 - legal counsel for National Australia Bank.

* 2003 to 2007 - compliance manager at ANZ.

* 1999 to 2003 - director for regulatory operations at Asic.

* 1986 to 1999 - law clerk and solicitor in New Zealand, the UK and Hong Kong.

Family: Married, two children.