Commerce and Consumer Affairs Minister, Cameron Brewer, has accepted the resignation of Financial Markets Authority (FMA) Chair, Craig Stobo, after an independent review found his public commentary failed to meet the standards of political neutrality expected of the head of an independent regulator.
The review, undertaken by Wendy Aldred KC, examined several matters raised by members of the FMA Board.
The review provided four findings:
- There was no evidence of an inappropriate relationship between Mr Stobo and a former staff member;
- Mr Stobo acted reasonably in disclosing a governance-related interest and later in agreeing to resign from it, but he should not have delayed it for as long as he did;
- Mr Stobo’s applications for FMA travel were not inappropriate;
- However, aspects of Mr Stobo’s public commentary did not meet the standards of political neutrality expected of the Chair of an independent Crown entity and financial markets regulator.
“Mr Stobo agrees that it is important the FMA remains fully focused on its core regulatory role and continues to command the confidence of Ministers, regulated entities and stakeholders,” Mr Brewer says.
“It is therefore appropriate for Mr Stobo to resign from the role.”
Mr Stobo’s decision to step down reflects the importance of protecting confidence in the FMA and ensuring its work can continue without distraction, said the Minister.
“The Financial Markets Authority’s primary role is promoting and facilitating the development of fair, efficient and transparent financial markets in New Zealand. Confidence in the independence and integrity of the regulator, and in its leadership, is fundamental,” he said.
The Minister thanked Mr Stobo (pictured) for his contribution to the organisation.
“I want to thank Mr Stobo for his service to the FMA. During his time as Chair, the FMA has worked through significant change across the financial services sector and continued work on the development of New Zealand’s financial markets regulatory framework, including engagement with regulated entities and cross‑sector agencies.”
“The Government remains committed to a strong, independent financial markets regulator that operates with integrity and maintains the confidence of New Zealanders.”
Steven Bardy will continue as Acting Chair while a process is undertaken to appoint a permanent Chair.
View the review here.
