Simon Power appoints former NZX chairman Simon Allen to head new securities watchdog
Here is the full statement below from Commerce Minister Simon Power on the appointment of Simon Allen to chair the Financial Markets Authority (FMA). Current FMA establishment board head Simon Botherway did not apply for the position.
Cabinet has approved the appointment of Simon Allen as chair of the soon-to-be established Financial Markets Authority, Commerce Minister Simon Power announced today.
Mr Allen is the current chair of Crown Fibre Holdings, a former chair of NZX, and the founder and a former managing director of ABN AMRO New Zealand.
“I’m delighted Mr Allen has agreed to do this crucial job,” Mr Power said.
“He is a highly regarded investment banker with more than 20 years’ experience in governance and financial markets and has exactly the credentials the new regulator needs.
“With his expertise in executive leadership, strategy development, and general commercial transactions I’m confident he will set the right culture for the FMA.
“This is something we must get right, and with Mr Allen at the helm, the FMA will be well-placed to deliver on its role of rebuilding public confidence to invest in our financial markets after the global financial crisis and the collapse of finance companies.
“I expect him to work alongside the Establishment Board and the Chief Executive designate, Sean Hughes, to ensure a smooth transition to the new regulator, which is scheduled to be up and running by May.”
Mr Allen will be appointed for a two-year term starting at the establishment of the FMA, with the role being on a part-time basis.
The foundation board of the FMA will play a crucial role in establishing and implementing the strategic direction for the FMA. Announcements on other board members will be made in coming weeks.
Mr Allen’s appointment is subject to the successful passage of the Financial Markets (Regulators and KiwiSaver) Bill and the consent of the Governor-General.
Simon Allenwas the founder and former Managing Director of ABN AMRO New Zealand, which he formed as a greenfields operation in 1988. He has advised the Crown on the sale of Contact Energy, and has been involved in a wide range of activities involving the capital markets. He was chair of New Zealand Exchange Ltd (NZX) from 2001 until 2008. He currently chairs Crown Fibre Holdings, which was established to manage the Crown’s investment in ultra-fast broadband infrastructure.
The Financial Markets Authority is being established by the Financial Markets (Regulators and KiwiSaver) Bill, which is before Parliament. The FMA will act as the single market conduct regulator for New Zealand’s financial markets, introducing a culture of visible, proactive and timely enforcement. It will consolidate the functions fragmented across the Securities Commission, the Ministry of Economic Development, including the Government Actuary, and the NZX.
The FMA Establishment Board was set up in May 2010 with the task of advising on the creation and strategy of the FMA. It also advised on the appointment of Chief Executive designate Sean Hughes.