The case centres on five small orders for RUA’s shares that Cheng made over a 10-day period during late 2020 via a broking account he held with ASB Securities. The FMA alleges Cheng’s orders lacked a genuine commercial purpose and were aimed at increasing the price and/or demand for RUA shares at a time when he held a material shareholding in the company.
The FMA claim contains five causes of action, each alleging contraventions of the trade-based market manipulation prohibitions in the Financial Markets Conduct Act 2013 (FMC Act) and it is seeking a declaration of contravention, a civil pecuniary penalty and costs.
The NZX’s frontline regulatory agency NZ RegCo referred the conduct to the FMA which then investigated. NZ RegCo acted after ASB Securities had earlier reported potential concerns about the orders. NZ RegCo and the FMA work together to detect and respond to market manipulation on licensed markets.
RUA is not a party to the proceeding. The case was filed in the Auckland High Court.
| « Hastings-based FAP first of its kind to become B Corp | FMA files court proceedings against Tiger Brokers » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved