Commerce and Consumer Affairs Minister Cameron Brewer has accepted the resignation of Financial Markets Authority chair Craig Stobo after an independent review found aspects of his public commentary did not meet the political neutrality standards expected of the role.

The review, conducted by Wendy Aldred KC, examined several matters raised by FMA board members. It found:

• no evidence of an inappropriate relationship between Mr Stobo and a former staff member;
• he acted reasonably in disclosing a governance-related interest and later stepping down from it, but delayed longer than he should have;
• his applications for FMA travel were not inappropriate; and
• aspects of his public commentary did not meet the neutrality standards expected of the chair of an independent Crown entity and markets regulator.

“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,” Mr Brewer said, adding, “It is therefore appropriate for Mr Stobo to resign from the role.”

The Minister said confidence in the independence and integrity of the FMA’s leadership is fundamental to its job of promoting fair, efficient and transparent financial markets.

Steven Bardy will continue as acting chair while a process is undertaken to appoint a permanent chair.

The Government thanked Mr Stobo for his service. The review by Ms Aldred is attached to the Minister’s announcement and available online. The release did not specify which public comments were at issue or further detail on the governance-related interest.