Investigation rumours swirl
The FMA is reportedly looking into market manipulation allegations against an individual at one of the country’s big-name fund managers.
Thursday, February 5th 2015, 2:37PM 
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An industry source said word of the investigation had got out within the industry at the end of 2014.
It is believed the staff member at the local fund manager was timing trades to manipulate pricing.
As well as looking at month-end performance manipulation used to boost fund performance there are rumours that the investigation may involve how fees are calculated.
The NZX has primary responsibility for detecting problematic trading activity, and then refers questionable conduct to the FMA. The FMA will not comment on its investigations.
A person convicted of creating a false appearance of trading faces potential imprisonment or a fine of up to $500,000.
A firm faces a fine of up to $2.5 million.
There is concern among the industry that it would damage consumer confidence if, once the investigation is complete, the manager in question is not named.
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For the record it is not Pathfinder Asset Management.