Milford a test case, lawyer says
The FMA will be reasonably confident in its chances of success in civil proceedings against Milford Asset Management portfolio manager Mark Warminger, a financial services lawyer says.
Chapman Tripp says proceedings filed by the regulator against Warminger for market manipulation will be an interesting test case.
It is only the second case of market manipulation that has made it to court in New Zealand, after Brian Henry was ordered to pay $130,000 for manipulating the price of Diligent shares.
The FMA allegations fall into three categories: Placing small trades directly on market in one direction, followed by large off-market trades in the opposite direction; trading that manipulates the closing price, and trading conducted in order to set the price rather than for a genuine commercial purpose.
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