New Commerce and Consumer Affairs Minister Cameron Brewer has accepted Financial Markets Authority Chair, Craig Stobo’s offer of resignation.
This follows the completion of an independent review into Stobo’s conduct, which the statement from Brewer says found aspects of 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.”
Brewer says 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.”
The independent review, undertaken by Wendy Aldred KC, examined several matters raised by members of the FMA Board.
“The review had four findings:
- There was no evidence of an inappropriate relationship between Stobo and a former staff member
- 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
- Stobo’s applications for FMA travel were not inappropriate
- However, aspects of 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.
“It is therefore appropriate for Mr Stobo to resign from the role.”
Brewer says Stobo’s “…decision to step down reflects the importance of protecting confidence in the FMA and ensuring its work can continue without distraction.
“The FMA’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 also thanked Stobo for his contribution, noting that in 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.
Steven Bardy will continue as Acting Chair while a process is undertaken to appoint a permanent Chair.