Source: Radio New Zealand
Craig Stobo (file photo) RNZ / REECE BAKER
Financial Markets Authority chair Craig Stobo has resigned after an independent review found his public commentary failed to meet the standards of political neutrality expected of the head of an independent regulator.
Minister of Commerce and Consumer Affairs Cameron Brewer accepted Stobo’s resignation following the completion of a review into his conduct, led by Wendy Aldred KC.
His public submission and remarks on the Treaty Principles Bill were found to be “laudatory” of the government, critical of the opposition and in breach of public service requirements to be impartial.
The review cleared Stobo of allegations of an inappropriate relationship with a former staff member and of misuse of FMA travel, but found shortcomings in how he managed conflicts of interest and, critically, in his public political commentary.
Three Board members of the FMA had met Minister Brewer over their concerns. Stobo stood aside temporarily last December after the review was announced.
Steven Bardy will continue as acting chair while a process is undertaken to appoint a permanent replacement.
The review findings
The independent review by Wendy Aldred examined several matters raised by members of the FMA Board.
The review found:
- 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 his resignation 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”.
The focus of the finding was around comments and a public submission Stobo made to Parliament on the Treaty Principles Bill. The review described it as “laudatory” of the coalition government and critical of the opposition, so it breached the Public Service Commission code of political impartiality.
The review said the final finding alone, was sufficient on its own to justify his resignation.
His remarks came after FMA senior managers had raised the need to be cautious about public comments.
Financial industry veteran
Stobo is a 35-year veteran of the finance sector, with a wide range of roles in investment banking and taxation, and directorships of listed companies.
He has been on taxation advisory groups to Labour and National-led governments, which led to the current approach to the tax system for KiwiSaver funds and was extended to overseas investors.
His LinkedIn profile also says he is founding director of the Auckland Future Fund, building an investment portfolio after the sale of council shares in Auckland International Airport.
He also lists his certificates as including being a Chevalier of the Confrerie des Chevaliers du Tastevin, a group promoting Burgundy wines and gastronomy.
But the review – and Stobo’s resignation – may not be the end of the story for the FMA
After the findings were released, a statement was released by former FMA senior advisor Kyla Bottriell, who said she welcomed the release of the review as it confirmed she had an “entirely professional relationship’ with Stobo.
The report’s findings mattered because false and damaging rumours about her were allowed to circulate within the FMA and to media, she said, causing her both personal and professional harm.
“The report corrects the public record, but it does not repair the harm, or answer wider questions about how a conduct regulator allowed misinformation to escalate causing lasting damage to my reputation.”
She said she had raised legitimate concerns through proper channels about the FMA’s internal culture, rumour‑spreading, lack of accountability and leaking of internal matters, and that those issues remain unaddressed.
“I expect the FMA to acknowledge the harm caused to me and to support a credible independent review of the conduct and culture issues that allowed this to occur.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand