One of the priorities of the Government has been to rebuild confidence in New Zealand's capital markets so that everyday investors can feel more confident about putting their savings there. It is important that investors understand the basics of investment, get advice that they can trust and make informed choices. The Government also sees confidence in capital markets as vital to improving the financial wellbeing of New Zealanders. Capital markets are a vital source of finance for our businesses to grow and create jobs.

To this end the Financial Markets Authority (FMA) is being set up as a new "super regulator" of financial markets. It is expected to be operational by early next year. The FMA will consolidate functions currently fragmented across the Securities Commission, the Ministry of Economic Development (including the Government Actuary) and NZX.

The FMA will enforce financial reporting and company law as applied to financial services and securities markets. It will regulate and oversee trustees, auditors, financial advisers and financial service providers.

Finance company collapses have highlighted a problem of investors' money falling through cracks between regulators. The FMA is intended to close those cracks.