FMA files charges for insider trading

Article – BusinessDesk

FMA files charges against person for insider trading in mobile voucher firm Plexure

By Paul McBeth

Oct. 11 (BusinessDesk) – The Financial Markets Authority has filed criminal charges against a person in the Auckland District Court, accusing them of insider trading in mobile voucher firm Plexure Group, then called VMob.

The person used to hold a senior role at Plexure and has been charged under the Securities Markets Act with insider trading and failing to disclose interests in VMob shares, the FMA said in a statement. NZX referred the matter to the market watchdog in September 2014, and the FMA said that Plexure had cooperated with the investigation and wasn’t part of the probe.

“The integrity of New Zealand’s licensed markets is a key strategic priority for the FMA,” FMA head of enforcement Karen Chang said. “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.”

The charges were under legislation pre-dating the current Financial Markets Conduct Act because of the issues took place in July 2014, the FMA said.

At the time, Plexure was listed on the NZX’s small-cap Alternative Market, which it joined in 2012 via a backdoor listing. The shares plunged as much as 78 percent between January 2014 and July 2014, before spiking up 25 percent in one day after announcing McDonald’s Corp would use its mobile voucher platform for its 3,200 restaurants in Japan.

(BusinessDesk)

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