Craig Stobo has resigned as chair of the Financial Markets Authority after a six-month independent investigation found he breached neutrality expectations through some of his public commentary, according to reporting by 1News and the National Business Review. The decision follows a review by Wendy Aldred KC into several concerns raised about his conduct while in office.

The investigation did not uphold claims that Stobo had engaged in an inappropriate relationship with a staff member, nor did it find fault with his travel-related claims to the regulator. But it did conclude that he should not have delayed declaring a governance-related interest, and that some of his comments in public forums went beyond what was acceptable for the head of a state regulator. According to 1News, the review said there was just cause for the minister to seek his removal under the Crown Entities Act.

Commerce Minister Cameron Brewer accepted the resignation and said it was important for the FMA to stay focused on its regulatory mandate and retain the confidence of ministers, market participants and other stakeholders. The National Business Review reported that the review took issue with remarks seen as supportive of the current National-led government and critical of the former Labour-led administration, which were judged to conflict with neutrality rules.

Stobo had already stepped aside temporarily while the Ministry of Business, Innovation and Employment examined the matter, as reported earlier by the New Zealand Herald, RNZ, Interest.co.nz and TMM Online. MBIE said at the time that he would also step back from his other Crown governance and advisory roles during the inquiry. Stobo, appointed FMA chair in May 2024, has also held senior positions including chair of the Local Government Funding Agency and director of Auckland Council’s Future Fund.

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Source: Noah Wire Services