The Ministry of Business, Innovation and Employment (MBIE) has launched an investigation into "matters that have been raised about Financial Markets Authority (FMA) Chair Craig Stobo."
In an announcement issued on Friday evening, MBIE says Stobo has agreed to temporarily step aside as FMA Chairman while the investigation takes place. He's also stepping aside from other Crown governance and advisory responsibilities.
MBIE is leading an independent investigation as the monitoring department for the FMA.
Also Independent Chairman of the New Zealand Local Government Funding Agency (LGFA) and a Director of Auckland Council's Auckland Future Fund, Stobo's biography on the LGFA's website notes he has worked as a diplomat, economist, investment banker, chief investment officer, and CEO.
"He has authored reports to the New Zealand Government on the Taxation of Investment Income, which led to the PIE regime, and the creation of New Zealand as a funds domicile. Craig is a Taumata of the University of Otago Business School," the LGFA website says.
Stobo is a former CEO of BT Funds Management and did a report on the taxation of investment income for the then-Finance Minister Michael Cullen in 2004. He was appointed FMA Chairman last year for a five-year term.
The FMA was launched in 2011, under the oversight of the then-Commerce Minister Simon Power, to regulate New Zealand's financial markets. It succeeded the Securities Commission following the wholesale meltdown of the finance company sector, with the Government tasking the FMA with restoring retail investors' confidence in the capital markets after hundreds of thousands of investors lost billions of dollars in finance company collapses.
Below is MBIE's statement.
Media statement regarding Craig Stobo
The Ministry of Business, Innovation and Employment (MBIE) has commenced an investigation into matters that have been raised about Financial Markets Authority (FMA) Chair Craig Stobo.
Mr Stobo has agreed to temporarily step aside as FMA Chair while the investigation is undertaken. He will also step aside from his other Crown governance and advisory responsibilities.
MBIE will be leading an independent investigation into these matters as the monitoring department for the FMA.
MBIE can make no further comment until the investigation is complete.
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