Financial Markets Authority (FMA) - Chairperson

About the Financial Markets Authority

The Financial Markets Authority (FMA) is an independent Crown entity under the Crown Entities Act 2004, established to carry out specific functions under the Financial Markets Authority Act 2011. The FMA's duty is to promote and facilitate the development of fair, efficient, and transparent financial markets; and to promote the confident and informed participation of businesses, investors, and consumers in the financial markets.

Financial Markets Authority Board

The Financial Markets Authority Board is the governing body of FMA. The Board's focus is on the strategic, financial risk and regulatory issues that determine the overall success of FMA. The FMA website(external link) has further information about the FMA and the Board.

The Financial Markets Authority is a Crown entity

The Crown Entities Act provides a framework for Crown entity governance and accountability, including responsibilities of board members, disclosure of interests, and the role of Ministers. It is available at http://www.legislation.govt.nz.(external link)

The Minister for Commerce and Consumer Affairs is the responsible Minister for the FMA. Under the Crown Entities Act, the responsible Minister has powers with regard to all entities on matters of strategic direction, targets, funding, performance, reporting and reviews.

Further information on how the relationships between Crown entities, ministers, and departments work in practice can be found on the Public Service Commission’s website.(external link)

Member responsibilities

Role of the chairperson

A Crown entity chairperson should:

• Provide effective leadership and direction to the board and entity, consistent with the purpose of the entity and Ministers’ expectations.
• Ensure effective accountability and governance of the entity, consistent with the requirements of relevant legislation, including the Crown Entities Act.
• Keep the responsible Minister informed under the 'no surprises' approach.
• Act as the leader of the entity, including presenting the entity's objectives and strategies to the public. Represent the entity to government and stakeholders, including attending any select committee appearance by the entity.
• Ensure appropriate policies and structures are in place to support the board, including processes in accordance with Schedule 5 of the Crown Entities Act. This includes procedures relating to the notice of meetings, Methods of holding meetings, quorum, special meetings, voting, board resolutions. The full schedule can be found here http://www.legislation.govt.nz.(external link)
• Take the lead, often in conjunction with the monitoring department, in providing comprehensive tailored induction for new board members.
• Ensure that the development needs of individual board members are identified and addressed and, where necessary, dealing with underperformance by board members.
• Ensure that a regular performance evaluation is conducted of the board as a whole, as well as of the chairperson and members individually.
• Participate in the recruitment process for new board members. This is likely to include maintaining a view on the desired composition of the board, considering succession planning for members and Chairperson and supporting Ministers and monitoring departments in appointing and reappointing board members.
• Provide guidance and support to the Chief Executive to ensure the entity is managed effectively. This includes establishing and maintaining an effective working relationship with the Chief Executive while also taking an independent view to challenge and test management thinking.
• Oversee the employment of the Chief Executive, including considering succession planning, and organising induction for a new Chief Executive.
• Represent the board in formal assessments of the Chief Executive's performance and in the required discussions with the Public Service Commission with respect to Chief Executive terms and conditions at time of appointment and performance reviews.
• Ensure that appropriate interest registers are in place, in accordance with the Crown Entities Act, and that members' conflicts of interest (including those of the Chairperson) are dealt with appropriately.

Develop and maintain sound relationships with Ministers and their advisors including:

• Leading any formal entity discussions with Ministers, particularly on budget and planning cycles, including the Statement of Intent and Letter of Expectations.
• Signing off on formal governance documents (Statement of Intent, Annual Report, others), generally in conjunction with the Deputy Chairperson (if appointed).
• Acting as spokesperson for the board to ensure that Ministers and other key stakeholders are aware of the board's views and activities, and that Ministers' views are communicated to the board.

Chair board meetings, including:

• Setting the annual board agenda and ensuring there is sufficient time to cover issues, ensuring the board receives the information it needs and that contributions are made by all board members and assisting discussions towards the emergence of a consensus view and summing up so that everyone understands what has been agreed.

Note: where the Chairperson is unavailable, absent or conflicted, the Deputy Chairperson (if appointed) will fulfil these roles. A Chairperson may also delegate various roles at times, for example to another board member.

Collective and individual duties of FMA members

The FMA Board provides governance for the organisation, and Board members are collectively responsible for:

• Setting and monitoring the strategic direction of the FMA.
• Taking decisions that it has reserved for itself under the delegations policy.
• Appointing a chief executive.
• Monitoring the performance of the FMA and its chief executive.
• Maintaining appropriate relationships with the Minister, Parliament, the Ministry, and the public.
• Complying with the Financial Markets Authority Act and the Crown Entities Act.
• Setting tone and culture of the organisation.

Membership of the Board

The FMA Board comprises between five and nine members, and no more than five associate members, in accordance with the Financial Markets Authority Act. The Chair and Board members are appointed by the Governor-General on the recommendation of the responsible Minister. The term of appointment may be for up to five years or any shorter period.

Time commitment and remuneration

The full Board meets in person approximately eight times each year, mainly in Auckland. Board members also participate in regular Committee and Division meetings throughout the year, either in person or online.

Remuneration for the Chairperson is determined by the Remuneration Authority and is personal to the individual. A determination of remuneration will be made on an appointment.

Person specifications

The successful appointee will likely have a practical understanding of the operation of financial institutions and implementing conduct-related change within those institutions. This will likely have been obtained through undertaking one or more senior positions in such an institution.

This appointee will not be able to concurrently hold a role with a regulated financial institution.

Specific skills required

Candidates who can provide a number of the following specific skills and experience:

• Extensive governance experience at board level, including experience as a chairperson.
• Experience in relating to ministers and senior public sector officials.
• An understanding of public accountability and the relationships between Government and a Crown entity.
• Substantive experience in capital and financial markets.
• Likely to hold qualifications in Law, Accounting, Economics or Finance.

Other general qualities and experience required for the Chair role are:

• Well respected by market participants and can obtain the confidence of governments.
• A record of sound judgement and the utmost integrity.
• An ability to analyse and understand complex issues.
• An ability to lead peers.
• Extensive experience dealing with multiple stakeholders.
• An appreciation of diversity, and ability to manage tensions arising from diversity.
• Free from material conflicts of interest.

Disclosure of interest

The Crown Entities Act requires that before a person is appointed as a director of a Crown entity, the person must disclose to the responsible Minister the nature and extent (including monetary value, if quantifiable) of all interests that the person has at that time, or is likely to have, in matters relating to the Crown entity company.

As part of the appointment process, candidates are required to complete a Disclosure Form. The information that is disclosed by the candidates enables the responsible Minister to know the relevant interests and any conflicts that a person may have in relation to an appointment to an entity. The information is used to assess whether a candidate would be able to contribute effectively to the entity’s affairs, and where conflicts are identified, to ensure that these can be managed appropriately.

Additional information

For enquiries about the position, email: boardappointments@mbie.govt.nz