Commissioner’s role to be disestablished

The Commissioner for Financial Advisers David Mayhew is to have his role disestablished and functions transferred to the Financial Markets Authority (FMA) after the Financial Advisers Act 2008 (FAA) is fully in force.

Thursday, September 16th 2010, 6:24AM

by Jenha White

This is outlined in Part eight of the Financial Markets (Regulators and KiwiSaver) Bill which looks at amendments to be made to the FAA.

Mayhew was informed of this decision a couple of weeks ago before the Bill went to Cabinet and he says he doesn't know what he will do next as the change is a while away.

"It's an interesting development for me personally."

The explanatory note of the Bill explains the disestablishment of the role saying the FAA currently provides that the Commissioner is a member of the Securities Commission and it is expected that the board of the FMA will be a non-executive, part-time board.

"However the role of the Commissioner is a full-time position and so is inconsistent with the expected governance model of the FMA."

It says the Commissioner has however, an important role in providing leadership in the setting up of the new financial advisers regime under the FAA during 2011 and in ensuring it is running smoothly over the following months.

"The Government's intention is that the Commissioner will be a member of the board of the FMA upon its establishment and that this Part will not come into force until late 2011," the Bill says.

As a result, amendments are to be made to the FAA to replace references to the Commissioner with references to the FMA, except in relation to the role of the Commissioner as the designated chairperson of the disciplinary Committee.

The Minister is to appoint one of the members of the Disciplinary Committee to replace Mayhew as its chairperson.

The Minister is currently in the process of appointing three to five members for the Disciplinary Committee before December 1.

Information and documents held by the Commissioner are also to be transferred to the FMA.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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