The statement notes that financial services companies have become increasingly similar in their products, management of business risk and financial structure, but that the state's regulatory regime has “failed to change with the times.”

In addition to examining the Insurance Department, the commission is expected to analyze the Banking Department, the Department of State, and the Attorney General's Office – and devise ways to streamline their regulatory processes.

Mr. Rothstein most recently served as head of the Morgan Stanley legal advisory coverage group for the Global Wealth Management Group. Previously, he was deputy general counsel of American Skandia, and he has also served as counsel at Aetna, and an attorney in private practice.

“With an incredibly impressive background encompassing law, insurance and securities, Scott Rothstein is perfectly positioned to understand the challenges facing New York and to guide the creation of a 21st Century regulatory framework for the industry,” Mr. Dinallo said in a statement.

Speaking to National Underwriter, Mr. Rothstein said, “I've worked in the financial services industry for most of my career, and I'm very excited to have the opportunity to work with Eric Dinallo, the governor, and the commission to make meaningful changes to keep New York competitive.”

Mr. Rothstein said that the commission is scheduled to have its first meeting with the full membership in January, and that a final report should be issued by the end of 2008. He added that the commission will make recommendations and proposals throughout the year.

While some independent agents have expressed concern about their lack of representation on the commission, Mr. Rothstein said that he has meetings scheduled with two different agent groups. “We are very interested in hearing their suggestions and involving them in the process,” said Mr. Rothstein.