FMA files insider trading charges

by Krizzel Canlas12 Oct 2017
The Financial Markets Authority (FMA) announced yesterday that it 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, which now trades as Plexure Group (NZX: PLX). The individual charged under the Securities Markets Act formerly held a senior role in the company.

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, the FMA said.

FMA Head of Enforcement Karen Chang said: “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.”

NZX and FMA work together to detect and respond to insider trading on licensed markets. The NZX referred the trading to the FMA in September 2014.

FMA said VMob/Plexure has not been part of the investigation and has not been charged with any offence. VMob/Plexure has cooperated with the FMA during its investigation.

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