Lady Susan Hussey has apologised and resigned after she questioned a black British charity boss about her background.
Lady Hussey, 83 - who was a close confidante of Queen Elizabeth - quit her role after it emerged that she repeatedly asked Ngozi Fulani, the founder of the Sistah Space charity, where she was "really" from.
Lady Hussey made the comments during a reception hosted by Camilla, Queen Consort, and Fulani subsequently shared the conversation with the public.
Earlier on Wednesday (30.11.22), Buckingham Palace announced that a staff member had resigned after making the "unacceptable" comments. However, Lady Hussey wasn't named by the Palace at the time.
A statement read: "We take this incident extremely seriously and have investigated immediately to establish the full details.
"In this instance, unacceptable and deeply regrettable comments have been made. We have reached out to Ngozi Fulani on this matter, and are inviting her to discuss all elements of her experience in person if she wishes.
"In the meantime, the individual concerned would like to express her profound apologies for the hurt caused and has stepped aside from her honorary role with immediate effect."
Meanwhile, a spokesperson for Prince William has reiterated that "racism has no place in our society".
The spokesperson added: "The comments were unacceptable, and it is right that the individual has stepped aside with immediate effect."
The controversy erupted after Ngozi recounted the conversation in an online post. The charity boss also referred to Lady Hussey as "Lady SH".
She said on Twitter: "Mixed feelings about yesterday's visit to Buckingham Palace. 10 mins after arriving, a member of staff, Lady SH, approached me, moved my hair to see my name badge. The conversation below took place. The rest of the event is a blur."
Ngozi subsequently explained that she was asked where she came from. She said: "We're based in Hackney" before the aide replied: "No, what part of Africa are you from?"
Ngozi went on to tell the staffer: "I am born here and am British." She was then asked: "No, but where do you really come from, where do your people come from?"
Ngozi then explained: "There was nobody to report it to. I couldn't report it to the Queen Consort, plus it was such a shock to me and the other 2 women, that we were stunned to temporary silence. I just stood at the edge of the room, smiled and engaged briefly with who spoke to me until I could leave. (sic)"