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FMA files insider trading charges

Media release
MR No. 2017 - 43
11 October 2017

The FMA has filed criminal charges against an individual in the Auckland District Court alleging insider trading in contravention of the Securities Markets Act 1988.

The charges relate to trading in shares of VMob Group Limited, which now trades as Plexure Group Limited (NZX: PLX). The individual was formerly engaged in a senior role in the company.

The individual has been charged under the Securities Markets Act 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.

Karen Chang, FMA Head of Enforcement, 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 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.

Ends

Notes:
The charges have been laid under the Securities Markets Act because the matters relating to these proceedings took place in July 2014

Contact:
Andrew Park
Ph: 021 220 6770
Andrew.park@fma.govt.nz