FMA withdraws civil proceedings against Insured Group
The Financial Markets Authority (FMA) has withdrawn civil proceedings against Insured Group over allegations of continuous disclosure breaches when it was known as Lombard Group.
Friday, June 17th 2011, 4:35PM
FMA chief executive Sean Hughes said the regulator needed to focus on the most serious areas of misconduct and against those who set out deliberately to mislead or deceive.
"We concluded that the civil proceedings against Insured did not meet FMA's current tests for the types of matters we will prioritise," he said.
The case was commenced by the Securities Commission last year and Hughes said the decision to withdraw was made as part of a review of the caseload inherited from the Commission.
He also said the proceedings, directed at the current board of directors, would have been conducted at the cost of shareholders who generally had no involvement in the non-compliant behaviour.
"Accordingly, we felt that continuing the proceedings would not provide a significant deterrent effect for other listed issuers."
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