Kristy McDonald KC to lead investigation into 'matters raised in relation to workplace conduct and culture' at the Financial Markets Authority

The Ministry of Business, Innovation and Employment (MBIE) has appointed Kristy McDonald KC to head up an investigation into "matters raised in relation to workplace conduct and culture" at the Financial Markets Authority (FMA).

MBIE is the monitoring department for the FMA, New Zealand's principal financial markets conduct regulator.

"The Ministry of Business, Innovation and Employment has started an independent investigation into matters raised in relation to workplace conduct and culture at the FMA. The FMA Board is supportive of an investigation. MBIE has appointed Kristy McDonald KC to lead the investigation," MBIE says.

"We are mindful this is an unsettling situation for FMA staff, and we will ensure the investigation is completed as soon as is reasonable."

MBIE says it will ensure the investigator provides an independent, confidential channel for people to engage with the investigation, with details on how this can be accessed to be shared soon.

"We can make no further comment until the investigation is complete," MBIE says.

Last week the FMA said its board had recently become aware of cultural concerns at the FMA and was assessing the matters raised as a matter of urgency, with its CEO Samantha Barrass "on a period of leave." 

This acknowledgement came with a Stuff article highlighting concerns from current and former staff about bullying, psychological safety in the workplace, and the handling of staff complaints. 

In May the FMA announced Barrass won't be seeking re-appointment when her five-year term ends next year.

Last December MBIE announced it was investigating matters raised about the then-FMA Chairman Craig Stobo. In May it was announced that Stobo had resigned, following an independent review into his conduct finding "just cause" for him to be removed from the FMA board.

Also see: Why it's time for a review and reset at the FMA.