Commission happy with merger concept

The Securities Commission has welcomed the Government's announcement that it will consider merging the three regulatory bodies governing the financial markets.

Parts of the Securities Commission, NZX Disciplinary Tribunal and Companies Office would be merged into a single regulatory body if the Government decides to implement the recommendation put forward by the Capital Market Taskforce.

Commission chairwoman Jane Diplock said having one body would increase efficiency in regulating the financial markets.

"There are areas where there are potential overlaps of power and responsibilities and I think it's a way of streamlining the regulatory framework and I think it's a good thing for investors and markets as well."

She said the three bodies had worked together to try to make sure no doubling-up occurred.

"But that doesn't mean it's the most effective structure and that's really what this opportunity can lead us to do."

The proposed consolidation would clarify which responsibilities belonged to whom - something which is not so clear at the moment.

"This is a really good opportunity for us to think about how you would put those responsibilities together."

The Securities Commission has come under fire for failing to act over finance company collapses.