One person charged with insider trading
The Financial Markets Authority (FMA) has filed criminal charges against an individual in the Auckland District Court alleging insider trading.
The charges relate to trading in shares of VMob Group Ltd, which now trades as Plexure Group Ltd. The individual was formerly engaged in a senior role in the company.
The individual has been charged under the Securities Markets Act 1988 with insider trading and failing to disclose interests in VMob shares.
The insider trading laws prohibit people who hold material information that is not generally available to the market (inside information) from trading on that inside information.
Material information is information that a reasonable person would expect, if it were generally available to the market, to have a material effect on the price of shares.
“The integrity of New Zealand’s licensed markets is a key strategic priority for the FMA. The insider trading prohibitions are one of the key mechanisms for ensuring licensed markets remain fair and transparent. The FMA will take enforcement action where it finds evidence of insider conduct,” says Karen Chang, the FMA’s Head of Enforcement.
NZX and the FMA work closely together to detect and respond to insider trading on licensed markets. NZX referred the trading to the FMA in September 2014.
VMob/Plexure has not been part of the FMA’s investigation and has not been charged with any offence. VMob/Plexure has cooperated with the FMA during its investigation.
The FMA says the charges have been laid under the Securities Markets Act because the matters relating to these proceedings took place in July 2014
Last updated on the 16th September 2019