According to a Cabinet paper, the government department said it was happy with streamlining the number of regulatory bodies dealing with securities law into the Financial Markets Authority, but was not convinced of the need for it to be set up by next year.

"We view the risks of seeking to significantly advance the establishment of the new regulator before a full picture of the regulatory regime it will operate within is finalised as significant," Treasury officials said. "We are also not convinced that accelerating the establishment of the new regulator by a matter of months will make a material difference to investor confidence in the long term."

The department warned the new regulator's independence from government meant it risked taking on unwanted cultures or behaviours from the existing bodies if the consolidation was rushed.

The proposed FMA will amalgamate the powers and functions of the Securities Commission, some of the functions of the Registrar of Companies and the Government Actuary, and some of the regulatory roles of NZX.

That includes operating the register for financial advisers and financial service providers.

Power also proposes to introduce a public register for securities to allow the public, financial advisers and investors to search for and access information about offers and other disclosure notices that are currently lodged with the Companies Office.

Former fund manager Simon Botherway is heading up the regulator's establishment board, which will set up the FMA, and he is widely tipped to take the top role when Securities Commission chairman Jane Diplock completes her term.