New Zealand's Financial Markets Authority (FMA) is facing mounting scrutiny over its workplace culture, with the country's Shareholders' Association warning of "systemic cultural issues" that have undermined confidence in the financial regulator, according to media reports.
The concerns come after the FMA announced that Chief Executive Samantha Barrass had taken leave following the board's discovery of internal cultural issues.
Acting Board Chair Steven Bardy said the board was treating the matter "as a matter of urgency", while board member Alastair Hercus has been appointed interim chief executive.
The developments were first reported by RNZ and followed allegations from former employees published by Stuff.
Shareholders' Association raises concerns over leadership and culture
Shareholders' Association Chief Executive Oliver Mander said his organisation had received information pointing to deep-rooted workplace issues within the regulator.
"We did hear and did receive information relating to some pretty systemic cultural issues at the FMA," he said.
Mander added, "We commented some time ago about the succession issues there, in terms of the loss of both the chair and the chief executive within a very short space of time.”
Barrass had already announced in May that she would leave the FMA when her five-year term ends in January 2027. However, her decision to step aside while the board investigates the latest concerns has intensified uncertainty at the regulator.
Leadership vacuum raises questions
The latest developments come just months after former FMA Chair Craig Stobo resigned following an independent review that found aspects of his public commentary failed to meet the standards of political neutrality expected of the head of an independent regulator.
With both the chair and chief executive positions now being held on an interim basis, Mander commented, "It just highlights the fact that whoever comes into those roles have a big job on their hands to make sure that we can get confidence back into our regulator."
He further added, "It's actually really important that the ability to deal with people is there. And that's not just external stakeholders in terms of engagement but it's actually in terms of being able to lead what is quite a large organisation that does a really important job.”
Culture review follows months of internal concerns
The board's review comes after former FMA senior adviser Kyla Bottriell said she had previously raised concerns about the regulator's workplace culture, accountability and the handling of internal complaints. She called for an independent review into the organisation's conduct and culture, arguing that the issues had remained unresolved.
According to media reports, allegations from former employees, including claims of bullying and poor handling of workplace complaints, prompted the board to launch an urgent internal review.
The FMA is responsible for overseeing the conduct and culture of New Zealand's banks, insurers, fund managers and other financial institutions.
The leadership upheaval and internal review now place the regulator itself under the same level of scrutiny it routinely applies to the organisations it supervises.
The developments leave the regulator without permanent leadership at a time when it is implementing new consumer finance responsibilities and seeking to maintain confidence across New Zealand's financial sector.