Hughes has some regrets

It was announced yesterday that he will not seek another term in the role. A replacement appointment is expected before the end of the year.

Hughes said he was looking forward to reconnecting with his wife and sons, who are in Melbourne. With the Financial Markets Conduct Act looming, Hughes said the time came that he had to decide whether he wanted to stay on and tackle a new set of challenges, or pass the FMA on to someone with a fresh set of eyes.  “I decided that this is the end of the line for me. There’s no bad blood.”

He said leading the FMA had been a great opportunity.  It had been a very welcoming environment, and he had worked with a very enthusiastic team. “I’ve very humbled to have had this chance and I hope I’ve done a good enough job to be remembered well.”

The financial marketplace had an appetite for something bold, courageous and different, he said. “I hope we delivered that.”

But he said while his time was taken up with a lot of the “foundation-building” work of the organisation, it would have been valuable to have been able to get out and meet “mum and dad” investors. “We were set up to build confidence. We have to have investors who are willing to come in and part with their cash.”

He said he didn’t have enough time to discuss their anxieties with them and encourage them to return to investment markets.

The Ross Asset Management investors group said Hughes was a casualty of the RAM debacle. “The failure of the authorities to act on written warnings about RAM three years ago, and the licencing of Ross by  the FMA as an Authorised Financial Adviser without adequate due diligence, speak for themselves.”

Hughes said he had a lot of sympathy for the Ross investors. “But they’re very quick to point the finger of blame at everyone else. They should think long and hard about their decision making and how they came to be in the position they are in.”

Hughes said whoever was his successor should have had experience in the financial markets. “The FMA needs people who understand how markets work, to retain its relevance and immediacy.”

There are no job offers on the table. “I just want to draw breath and think about what I can add value to.”

FSC reaction: Sorry to see Sean Hughes go

“We will be sorry to see him go and have valued his support and energy in leading the market watchdog so successfully”, said Financial Services Council CEO, Peter Neilson.

The Financial Services Council expressed its appreciation of the Financial Markets Authority chief executive, Sean Hughes, who has announced that he won’t seek a second term in charge of the market watchdog.