FMA poised to move to Auckland base

Sean Hughes. Photo / Mark Mitchell

The Financial Markets Authority is poised to shift much of its market operations to Auckland to be closer to New Zealand's capital markets.

"I don't think we can really credibly hold ourselves up as a regulator of capital markets without being there," said chief executive Sean Hughes.

Hughes took up the top job last week following two stints at the Australian Securities and Investment Commission which not only has major offices in Australia's commercial powerhouses like Sydney and Melbourne but all other state capitals.

"It's understandable, coming from the Australian model, you just have to be where the market is," said Hughes.

"I am respectful of the fact that people here in New Zealand seem to think it's essential to have a head office. I'm not wedded to that concept. I think what you should have instead is centralised functions where it makes sense."

A proposed organisational structure is likely to be up for discussion by the FMA board when it meets for the first time this month.

Hughes' preference is to base himself in Auckland alongside the FMA's proposed market intelligence unit and market monitoring team. Some functions - including regulatory policy - could stay based in Wellington.

"Market intelligence to me will be front and centre of everything that we have been doing," said Hughes.

"I can't see why you wouldn't centralise that function anywhere else rather than in Auckland. Because that is where it is going to be happening. That is where the risks are arising in terms of the head offices of our major financial entities."

Hughes is currently based at the Securities Commission's old building on Wellington's The Terrace. But staff are spread across three buildings in the capital. He wants to operate an open-plan office with an emphasis on transparency rather than people being secreted away behind closed doors.