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Summarised by Centrist
Craig Stobo has resigned as chair of the Financial Markets Authority after an investigation found he made political comments inconsistent with the neutrality expected of an independent Crown entity chair.
King’s Counsel Wendy Aldred led the investigation after concerns were raised by three FMA board members. Stobo temporarily stood down in December.
Commerce and Consumer Affairs Minister Cameron Brewer said: “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.”
The investigation examined a range of public comments made by Stobo, including support for ACT’s Treaty Principles Bill and praise for the coalition government.
Aldred described some of his remarks as “laudatory” of the government and individual ministers. One example cited was Stobo’s comment in the NZ Herald’s Mood of the Boardroom survey that: “The Coalition continues to deliver ‘The Great Unwind’ of atrocious policy settings of the last government.”
The report also criticised Stobo for questioning the need for mandatory Climate Related Disclosures without first discussing the matter with the FMA board, despite the regulator overseeing the regime.
Aldred concluded that the “repeated nature” of Stobo’s conduct justified his removal as chair.
The investigation also examined issues related to a self-funded trip to Estonia, though Aldred said those matters alone would not have justified dismissal.
Aldred said those issues reflected “a lack of judgment”, but would not have justified dismissal on their own.
Stobo declined to comment on the findings.
Editor’s note: The investigation found Craig Stobo breached expectations of political neutrality for the chair of an independent Crown entity. But if a regulator had publicly praised strong climate action, criticised the Treaty Principles Bill, or expressed views more aligned with establishment consensus, would the response have been the same?
