FMA chair Craig Stobo resigns over comments which breached political neutrality rules, report finds
Monday, 4 May 2026
Craig Stobo has resigned as chair of the Financial Markets Authority after an independent report said he had not met standards of political neutrality.
That related to comments he made talking to Michael Laws on the right-leaning media channel The Platform, in articles published in the New Zealand Herald, and in a personal submission in support of David Seymour’s Principles of the Treaty of Waitangi Bill.
Commerce and Consumer Affairs Minister Cameron Brewer said he had accepted Stobo’s offer of resignation following the completion of an independent review into his conduct.
“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,” Brewer said.
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“It is therefore appropriate for Mr Stobo to resign from the role,” he said.
The Post contacted Stobo for comment, but he said he did not have a comment to make.
Stobo had been shoulder-tapped for the job as chairperson by former Commerce and Consumer Affairs Minister Andrew Bayly because of his experience and background in business and economics. His appointment came at a time the FMA was seeing a decline in approval from the businesses it regulated, and Stobo was seen as someone who could win back lost trust.
Senior civil servants are expected to remain politically neutral, but the report by King’s Counsel Wendy Aldred cited multiple instances of Stobo giving opinions that praised Prime Minister Christopher Luxon and were critical of the opposition.
He also spoke favourably of “The Great Unwind”, a term used to refer to the current coalition Government unpicking policy settings and laws put in place by the previous government.
Stobo told Aldred he felt he highlighted issues without taking sides, and was careful in his interviews not to support particular candidates or parties.
However, Stobo was criticised by the Green Party for his January 2025 public submission to the Justice Select Committee supporting the introduction of the Principles of the Treaty of Waitangi Bill.
Aldred quoted Stobo’s submission in her report.
The extract Aldred quoted was: “The [Bill] finally defines what Parliament has failed to do since 1975. This provides clarity in statute for all New Zealanders and will ensure that we can prosper as a modern representative democracy.”
Aldred said Stobo told her he had made his submission in a personal capacity.
However, Aldred concluded that Stobo had breached the political neutrality rules of Public Service Commission’s Code of Conduct for Crown Entity Board Members.
“The repeated nature of Mr Stobo’s conduct, notwithstanding guidance provided on his induction into the role and the concerns subsequently raised with him by FMA management, has contributed to my view of the seriousness of this non-compliance,” Aldred said.
She said: “Stobo’s conduct as a whole has not reflected a diligent prioritisation of the FMA’s interests over his outside activities.”
The review was done following media coverage of a trip Stobo made to Estonia in July last year with a former colleague from the regulator, which is tasked with policing New Zealand’s capital markets.
However, the review found no evidence of an inappropriate relationship between Stobo and the former staff member, both of whom denied anything but a professional relationship, nor was there anything inappropriate about any of Stobo’s travel, Brewer said.
The report also probed concerns that Stobo held a role in a company that raised a conflict of interest with his role as FMA chair.
He had taken up a role as an independent director of a mortgage broking business called Indi, which was marketing itself using critical statements about the big banks.
One of the banks complained to the FMA that there was a conflict of interest between Stobo’s role as FMA chair and his directorship of Indi as bank conduct is partly regulated by the FMA.
Aldred said Stobo had disclosed potential conflicts of interest to the FMA, but he had been too slow to resign the directorship with Indi after it was raised by the FMA’s general counsel Liam Mason.
FMA chief executive Samantha Barrass had considered the role with Indi was “heavily conflicted” and that the matter was a serious one because: “We [the FMA] need to be beyond reproach because the inappropriate management of conflicts is not just a matter of regulatory requirements, we take enforcement action when conflicts are not managed appropriately.”
A copy of the report was sent by Brewer to media. It said Stobo had been provided with an opportunity to comment on it before it was finalised.