Craig Stobo was known for sharing his views on topical political and economic issues, including with Michael Laws on The Platform. Photo / Dean Purcell
Craig Stobo has resigned as Financial Markets Authority chairman, having voiced too many political views for someone in an apolitical public sector role.
King’s Counsel Wendy Aldred led an investigation into Stobo after three Financial Markets Authority (FMA) board members raised a range of concerns over his conduct with Commerce and Consumer Affairs Minister at the time, Scott Simpson.
Stobo agreed to temporarily stand down from the role in December.
The new Commerce and Consumer Affairs Minister Cameron Brewer today announced Stobo had resigned.
“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,” Brewer said.
Last year Stobo was criticised by Green Party co-leader Marama Davidson for making a personal submission to Parliament in support of Act’s controversial Treaty Principles Bill.
Aldred noted Stobo’s comments contradicted the FMA’s board-approved Māori strategy and said his conduct fell well below the expectations of a Crown entity board member.
She also pulled Stobo up for questioning, in an external forum, whether there needed to be a mandatory Climate Related Disclosures regime without discussing this with the FMA board first. The FMA oversees this regime.
Aldred described commentary Stobo made in the media on various political and economic matters as being “laudatory” of the coalition Government, and specific members of it.
For example, wearing his hat as chairman of NZ Windfarms, Stobo told the Herald, as a part of its Mood of the Boardroom survey, “The Coalition continues to deliver ‘The Great Unwind’ of atrocious policy settings of the last government.”
Asked to explain himself, Stobo told Aldred, “I’m quite – what’s the word? I raise my head above the parapet. Other CEOs and directors won’t do that."
Aldred also looked into various other issues around Stobo’s conduct.
These included “shortcomings” in Stobo’s communications with the FMA about a self-funded trip he took to Estonia in July 2025.
He didn’t tell the FMA he was meeting with the regulator’s Estonian counterpart. Nor did he say he would attend a programme of events with a former junior FMA staffer, Kyla Bottriell.
Aldred clarified there was no evidence of Stobo and Bottriell being in an inappropriate relationship, despite such rumours circulating.
She also looked into the handling of a perceived conflict of interest created by Stobo chairing the FMA’s board, while being an independent director of The Independent Mortgage Company.
The company is a lender that promoted the fact the chairman of the FMA was on its board, all the while marketing itself as being a challenger to the big banks, whose conduct the FMA regulates.
Aldred said Stobo acted reasonably by disclosing his interest in the company and agreeing to let go of the directorship after the FMA’s general counsel raised concerns about the perceived conflict.
However, she said he took too long to resign from company’s board. The concern was raised in July 2025, but Stobo’s resignation only took effect in December.
Aldred concluded the nature of Stobo’s public remarks were bad enough to justify his removal as chairman.
“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,” she said.
As for the other issues around the Estonia trip and the lending company, Aldred said these reflected “a lack of judgment”, but didn’t amount to sackable offences on their own.
“Together, however, these matters somewhat contribute to my conclusion that Mr Stobo’s conduct as a whole has not reflected a diligent prioritisation of the FMA’s interests over his outside activities, and weigh further in favour of my overall conclusion [that there is just cause for Stobo to be removed as chairman],” Aldred said.
Brewer said Stobo’s resignation was appropriate.
“The FMA’s primary role is promoting and facilitating the development of fair, efficient and transparent financial markets in New Zealand,” he said.
“Confidence in the independence and integrity of the regulator, and in its leadership, is fundamental.”
Aldred noted Stobo was headhunted for the FMA’s chairmanship in 2024 at the request of the Commerce and Consumer Affairs Minister at the time, Andrew Bayly.
Steven Bardy will continue as the FMA’s acting chairman until a permanent appointment is made.
Stobo continues to serve as a director of the Local Government Funding Agency, which issues debt on behalf of local councils.
In December, he stood down as chairman of the agency, pending the outcome of the FMA-related review.
Stobo declined to comment on the investigation and his future with the Local Government Funding Agency.
Jenée Tibshraeny is the Herald’s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.