New Zealand's financial regulator is probing two possible cases of insider trading and market manipulation, after receiving 15 complaints about such behaviour in the past year.
The Financial Markets Authority yesterday released its annual report into investigations and enforcement, and said it had an active probe into a complaint ofinsider trading and five cases in which it had made only preliminary inquiries.
It was also investigating one complaint about market manipulation after receiving three in the year to June 30.
The regulator last month concluded its first market manipulation case, against Brian Peter Henry, which resulted in the Diligent founder paying a $130,000 penalty.
The report said a now-closed investigation into market manipulation "highlighted the importance of brokers keeping clear records of client instructions and giving careful consideration to the nature and impact of client trading".
The FMA spent $400,000 more chasing Henry than it got back from him through the penalty, but said in the report that action which deterred misconduct in secondary markets was one of its "compliance priorities".
"Market manipulation can be hard to detect but the consequences on market integrity are great. Taking action that deters misconduct in secondary markets and provides clear guidance as to acceptable conduct is one of our compliance priorities."
Issues such as insider trading or disclosure breaches made up 21 per cent of the FMA's inquiries and investigations during the year to June.
