24 July 2013
FMA files first market manipulation case in New Zealand
The Financial Markets Authority (FMA) today confirmed that it has filed and served civil proceedings against Brian Peter
Henry alleging market manipulation of shares in the NZX-listed Diligent Board Member Services.
The proceedings contain six claims alleging certain orders and trades made by Mr Henry in 2010 breached the market
manipulation provisions of the Securities Markets Act. FMA’s investigation followed a referral from NZX.
FMA Head of Enforcement, Belinda Moffat, said this is the first market manipulation case to be taken in New Zealand.
“Market manipulation interferes with the integrity of New Zealand’s financial markets and harms the function of open,
transparent and efficient capital markets,” said Ms Moffat.
Brian Henry was a founding member of Diligent. He left the company in March 2009.
The maximum fine for breaching the market manipulation provisions of the Securities Markets Act is $1,000,000 for each
contravention.
The next step will be for Mr Henry to file his statement of defence.
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