Barrass wanted to be reinstated to her role while the investigations were underway and complained to the Employment Relations Authority.
The authority hasn’t published a decision on the complaint, but FMA chairman James Miller said the board had agreed to lift Barrass’ suspension now she is leaving.
Miller said the investigation into Barrass would be subsumed by the broader workplace investigation commissioned by MBIE. He said Barrass would partake in this investigation.
He did not detail the terms surrounding Barrass’ departure, including whether she would receive a payout.
However, he said Barrass would travel to Britain to see family and stay on to take part in a governance course, which she was scheduled to attend. The Herald has asked the FMA who is covering the cost of the trip, given Barrass’ resignation took effect immediately.
Miller said there would be “farewell events” for Barrass to appropriately recognise her contribution to the organisation.
More than 50 people contributing to investigation
A source, who is contributing to the workplace investigation, told the Herald they were “absolutely disgusted” by the board’s response and dubbed the farewell do a “sham”.
They feared having the investigation into Barrass absorbed by the broader workplace one risked reducing accountability.
The Herald understands more than 50 people are contributing to the workplace investigation.
Barrass said: “The last few weeks have been very challenging for me, as I have found myself on the receiving end of allegations, and where I have had to take time out for them to be investigated.
“I won’t comment further on them at this stage. That’s for the MBIE investigation process to get to the bottom of, and I trust it will do so.
“But I do wish to acknowledge those who have sent me messages of support, inside and outside of the FMA. It has been overwhelming.
“I also want to personally thank James Miller, the incoming chair, for his open-minded approach to this, and for supporting me to leave with grace and on good terms. I obviously wish him and the ‘new FMA’ well going forward.”
Barrass joined the FMA in 2022, having previously been chief executive of Business Banking Resolution Services in Britain, and the Gibraltar Financial Services Commission.
While overseeing Gibraltar’s financial sector, she took a job on the board of PwC’s UK Public Interest Body, supervising its behaviour. This was regarded as a conflict of interest by some.
Barrass was also embroiled in a defamation lawsuit with a Gibraltar lawyer after an insurance company he chaired collapsed. The suit was later settled.
“At the time of Ms Barrass’ appointment, the FMA board was aware of previous employment matters which were considered as an important part of its due diligence,” the FMA told BusinessDesk.
Former FMA chairman, who resigned under a cloud, now an NZ First candidate
In May, FMA chairman Craig Stobo resigned after an external investigation into his conduct found he made too many political comments for someone in an apolitical role.
The review, which was initiated after board members complained to the Commerce Minister about Stobo, revealed cracks in the relationship between Stobo and members of the FMA’s executive, including Barrass.
It also shed light on a messy conflict between staff, one of whom had just left the FMA and was falsely rumoured to be in a personal relationship with Stobo.
Stobo has since decided to run as a New Zealand First candidate in Botany, the seat held by Prime Minister Christopher Luxon.
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.
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