Watchdog's new faces to focus on investors

Commerce Minister Simon Power

Critics have welcomed a shake-up of the Securities Commission in which three new people will take up commissioner roles on the 11-member board.

Commerce Minister Simon Power yesterday announced expatriate David Mayhew would take up a role as the commissioner of financial advisers in January, taking over from temporary commissioner Annabel Cotton.

Former activist fund manager Simon Botherway and lawyer Mark Verbiest will also become commissioners at the investment watchdog. Verbiest will be the first into his new role, taking over from Mai Chen on October 1 as she leaves after a six-year stint on the board.

Botherway, who recently joined the board of Fisher & Paykel Appliances, will arrive in February, replacing lawyer Colin Beyer, who has been with the commission since 2001. Power said the new commissioners had been selected to provide a greater focus on securities and investors. "With Mark and Simon we looked to strengthen the depth and skill set with regard to securities law and practice."

Power said that did not mean the commission had lacked in this area previously but the Government was at the stage where a number of considerable changes were being made to the laws affecting securities.

Commentator Brian Gaynor, who has previously criticised the Securities Commission for being slow to react to issues such as financial company collapses, said the new appointments were positive and the biggest changes he had seen in the past 10 years.

"I would look upon it as being very positive, they are completely different. Colin Beyer was certainly of the old-school Wellington establishment - people who are not likely to shake the cage. Both Simon Botherway and Mark Verbiest are much more aware of what is going on in the marketplace. Both have got a bias towards investors." Gaynor said he expected them to engage with the commission and encourage it to react faster.

Former Securities Commission member and lawyer Stephen Franks also welcomed the change. "They have both had an active involvement in securities."

Mayhew's appointment fulfils a long search for the new role of commissioner of financial advisers. The Ministry of Economic Development began advertising for the position early last year but despite more than 20 local applicants it decided to turn overseas.

Mayhew, who was previously with Britain's Financial Services Authority, will be in charge of a code committee designed to set the minimum qualification standards for financial advisers and introduce the registration of all advisers and advisory businesses by the end of next year.

Power said the commission had been very lucky to get Mayhew and the Government was pleased by his appointment.

Securities Commission chief executive Jane Diplock said the commission had been criticised in the past for being made up of lawyers and accountants and it hoped Botherway's appointment would help to change that perception.

Botherway said the role would be a big change but he hoped to bring his experience with investors into improving regulation to protect investors.

An independent review of the commission is expected to be released on Thursday.

ON BOARD
New appointments to the Securities Commission:

DAVID MAYHEW
A New Zealander who has been a partner in law firm Herbert Smith in Britain since 2005. He was previously an advocate for the Financial Services Authority from 2001 to 2005 and was its acting director for enforcement in 2005.

SIMON BOTHERWAY
Former activist fund manager who founded Brook Asset Management and sold it to Macquarie Group. Was recently appointed to the board of Fisher & Paykel Appliances.

MARK VERBIEST
At present a consultant with law firm Simpson Grierson. He was group general counsel for Telecom from 2000 to 2008 and now holds a number of directorships including AMP Haumi Management, Gas Industry Company and South Cross Medical Company.