11 Oct 2017

FMA files insider trading charges

5:20 pm on 11 October 2017

The finance market regulator has brought its second case of alleged insider trading on the sharemarket within six months.

Zurich building, Central Auckland

Photo: RNZ / Calvin Samuel

The Financial Markets Authority filed criminal charges against a former senior member of a software developer previously known as VMob, which now trades as Plexure.

The charges have been filed in the Auckland District Court and follow information referred by the stock exchange in 2014.

"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 FMA's head of enforcement, Karen Chang said.

The company was not involved in the investigation and had not been charged with any offence.

In June, an Auckland man was sentenced to six months home detention for insider trading in the shares of transport logistics company Eroad, worth about $51,000.

Insider trading is regarded as improper use of information not publicly known by investors about a company.

It carries a maximum sentence of five years in jail and a fine of up to $500,000.