The concerns reached the Public Service Commission and Commerce and Consumer Affairs Minister on Friday, July 24.
By Wednesday, July 29, FMA chief executive Samantha Barrass went on leave and board member Alastair Hercus was made interim chief executive.
For some time, rumours have circulated that the FMA’s workplace culture has been poor, if not toxic.
Various sources have spoken to the Herald about bullying behaviour involving staff at the most senior levels. The accounts align with those detailed in a Stuff article published last Wednesday.
The FMA is understood to have relied heavily on keeping disgruntled staff quiet by getting them to sign non-disclosure agreements.
The Herald has asked MBIE whether those who had signed agreements would be able to break the terms and conditions of these to contribute to the investigation.
Conduct regulator accused of poor conduct
Ironically, the FMA is responsible for regulating the conduct of financial institutions.
In 2018 and 2019 it did a high-profile conduct and culture review of New Zealand banks and life insurers with the Reserve Bank.
Last year, the Reserve Bank had a tough year, which resulted in its governor and board chairman resigning.
As for the FMA, issues bubbled to the surface in December, when its chairman, Craig Stobo, temporarily stepped down, pending the outcome of a KC’s review into his conduct.
The review was initiated after three board members complained about Stobo to the minister.
Stobo resigned in May, after Wendy Aldred, KC, concluded he voiced too many political opinions for someone in an apolitical public sector role.
Aldred’s report showed Barrass and the FMA’s general counsel and executive director for evaluation and oversight, Liam Mason, raised concerns about Stobo meeting with various organisations in Estonia, which is known for being very digitally advanced, with a former FMA employee, Kyla Bottriell.
Aldred conceded there were “shortcomings” in Stobo’s communications with the FMA about the self-funded trip, but clarified there was no evidence of Stobo and Bottriell being in an inappropriate relationship, despite such rumours circulating.
After Aldred released her report, Bottriell said: “The report corrects the public record, but it does not repair the harm, or answer wider questions about how a conduct regulator allowed misinformation to escalate, causing lasting damage to my reputation.
“I have raised legitimate concerns through proper channels about the FMA’s internal culture, rumour-spreading, lack of accountability and leaking of internal matters. Those concerns pre-date this investigation and remain unaddressed.
“The FMA holds market participants to standards of fairness, transparency and good conduct. It should apply the same standards internally.”
Shortly after Stobo resigned, the FMA announced Barrass wouldn’t seek reappointment once her first term in the role ends in January.
Barrass left one of her former roles, as Gibraltar Financial Services Commission chief executive, in 2019, nearly a year before her contract was due to end. She was involved in litigation during this time.
Mediocre views of FMA
According to an internal FMA survey in September and October 2025, 59% of respondents saw a future for themselves at the FMA, despite 80% believing the work they did mattered and 72% feeling proud of their work. Of those surveyed, 61% said they would recommend the FMA as a place to work.
These results were poorer than those from a survey done in February 2025.
An FMA HR adviser attributed the deterioration to the impact of a recent organisational restructure and the reintroduction of a “performance framework”. She acknowledged “not all individuals are comfortable in a high-performance environment”.
In 2025, the FMA also surveyed its stakeholders, including those it regulates. Just over half (56%) agreed it was easy doing business with the FMA – a slight improvement from the previous year.
Meanwhile, 73% agreed the FMA was focused on the outcomes that mattered for consumers and 55% agreed the FMA’s approach to regulation was beneficial and proportionate.
Commerce and Consumer Affairs Minister Cameron Brewer responded to the latest concerns raised around the workplace culture, saying: “It is important to me that New Zealanders are able to trust our financial and regulatory institutions. That is why any concerns that are raised must be properly considered and addressed.
“I expect MBIE and the FMA to keep me informed on the outcomes of this process.”
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.
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.