The High Court in Auckland. Photo: RNZ / Simon Rogers
An "experienced retail investor" is facing High Court civil proceedings for alleged market manipulation.
The Financial Markets Authority (FMA) is taking action against Auckland investor Franco Belgiorno-Nettis, for alleged market manipulation of NZX-listed shares of Steel and Tube (STU).
The FMA said the case centred on orders for STU's shares that Belgiorno-Nettis made between November 2020 and July 2023, via two broking accounts he held with ASB Securities.
"The FMA alleges that Mr Belgiorno-Nettis' orders repeatedly impacted the closing prices of STU shares and were therefore likely to have the effect of creating a false or misleading appearance of trading," the regulator said in a statement.
The FMA alleged the orders did not have "a genuine commercial purpose".
"[The FMA alleges] Belgiorno-Nettis deliberately took actions to increase or maintain the price of STU shares for his personal advantage at a time when he held a substantial shareholding in the company."
The regulator sought a declaration of contravention, civil pecuniary penalties and costs from Belgiorno-Nettis.
STU was not a party to the proceeding.
The FMA said the court action followed an investigation after ASB flagged potential concerns about the orders to the share market regulator NZ RegCo.
"We take cases of market manipulation seriously to ensure New Zealand's markets reflect genuine supply and demand, in order to preserve their integrity and reputation," FMA head of enforcement Margot Gatland said.
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