The Financial Markets Authority (FMA) will slash its top-level leadership ranks almost in half under a restructure plan laid out last week by new chief, Samantha Barrass.
As part of a ‘change programme’ signaled earlier this year the FMA executive numbers will fall to six (excluding the CEO) from the current 11 as of next year.
However, a FMA spokesperson said the high-level reshuffle “is a growth story as we are expanding, not shrinking” in line with a government directive to prepare the regulator for “significant organisational and regulatory challenges”.
“The change at the top of the FMA represents the need to evolve and refresh the organisation design and leadership structure at the FMA,” the spokesperson said. “For a comparable size agency our review and consultation reflected that we probably had too many roles and functions at the most senior strategic level.”
Just three of the current crop of seven FMA senior leaders – four hold dual roles in an acting capacity – have been confirmed in top jobs once the new regime takes force early in 2023.
FMA veteran, Liam Mason, will take on the executive director evaluation and oversight position (in addition to his current general counsel duties) while Paul Gregory and Clare Bolingford have been awarded the respective roles heading response and enforcement, and, regulatory delivery.
Gregory is currently director of investment management and acting head of capital markets; Bolingford doubles as director of banking and insurance conduct, and external communications and investor capability.
Following the revamp the four remaining FMA senior leaders – James Greig, Sarah Feehan, John Botica and Brad Edley – will either resign of move down the food chain a little.
Chief operating officer, Edley, will leave the FMA at the end of this week with Botica assuming the role in addition to his current regulation duties – albeit in a short-term capacity.
According to a release, Botica would “continue to support the organisation through a transitional role to help the FMA prepare and implement the new structure”.
Meanwhile, Feehan (people and capability) will retain similar responsibilities but report to the yet-to-be-appointed executive director transformation and operational delivery.
Supervision director, Greig remains in a holding pattern for now leading “his current team in the transition to the FMA’s new structure, while future senior leadership roles are considered to make best use of his knowledge and extensive experience”, the statement says.
In addition to the director transformation and operational delivery position, the FMA is also recruiting for the new executive ‘strategy and design’ spot.
The regulator has also penciled in a Te Ao Māori executive director position, however, the release notes more “work is needed to scope this function before a permanent appointment is sought for this role”.
Barrass, who took over as FMA chief this January, said the regulator was “evolving and growing to deliver our existing responsibilities, alongside the increase of our legislative mandate”.
“To reflect these changes we are introducing a simpler organisational design where senior leaders work at the right strategic level, supporting stronger collaboration across high-performing, functional teams,” she said in the release.
Several senior FMA executives have moved on following the resignation of former chief, Rob Everett, last year.
The FMA has a heavy workload ahead with the new full licensing regime for advisers, upcoming financial institution conduct licensing, climate-reporting and looming insurance regulatory changes on the agenda.
To be funded mainly by higher industry levies, the FMA annual budget is also on track to reach almost $80 million in a couple of years, more than double the level of recent times.
As reported in July, the regulator is looking to hire grow staff numbers by 100 (from the current 240 or so) to meet its extra responsibilities.