Milford confirms FMA probe

Photo/ Richard Robinson

High-profile fund manager Milford Asset Management has confirmed it is being investigated by the Financial Markets Authority over alleged market manipulation.

"The investigation concerns an individual trader employed by the firm and certain specific trades," the company said.

"Milford and the trader concerned are co-operating fully with the FMA."

The company said the investigation does not have implications for client funds and has no impact on day-to-day operations at Milford.

"Milford looks forward to completion of the investigation," the firm said.

The FMA last week declined to comment on market speculation about the investigation.

Today, the FMA confirmed an ongoing investigation into trading activity at Milford, based on a referral from sharemarket operator NZX.

"The matters of the investigation remain confidential," an FMA spokesman said. "We will not be commenting further at this stage."

Milford was co-founded in 2003 by Brian Gaynor, who is a Business Herald columnist and an executive director of the fund manager.

It has more than $3 billion under management and