FMA files civil proceeding against Brian Henry over Diligent shares

The Financial Markets Authority has accused Brian Henry, venture capitalist, of market manipulation of shares in NZX-listed Diligent Board Member Services.

Mr Henry was a founding member of Diligent, a company that has been marred by missteps over its administrative disclosures, before he left in March 2009.

The FMA's proceedings "contain six claims alleging certain orders and trades made by Mr Henry in 2010 breached the market manipulation provisions of the Securities Markets Act", the market regulator says in a statement. Its investigation followed a referral from NZX.

FMA head of enforcement Belinda Moffat says it is the first market manipulation case to be taken in New Zealand.

"Market manipulation interferes with the integrity of New Zealand's financial markets and harms the function of open, transparent and efficient capital markets," she says in the statement.

The FMA saysthe next step will be for Mr Henry to file his statement of defence.

Shares of Diligent rose 0.8 percent to $6.55 on the NZX today.

(BusinessDesk)

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2 Comments & Questions

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Most NZers will see this as an attempt to discredit a self-reporting investor who has made millions for NZ investors - all because the FMA need a win urgently. Diligent's success is all down to the technology Brian Henry designed years ago. The question should be asked whether the FMA staff members who used to work for the NZX had anything to do with pursuing this case?

$1500 and self-reported and the FMA are chasing this very successful business creator. You can understand why he is turning the attention of his new company - one of the best and most exciting technologies that would have listed on the NZX but for hurdles put up by the FMA - towards other markets. A huge loss for the NZ investor market.

The FMA staff can't get things in perspective and have been shown wanting in the Ross case and should be focusing their efforts on investor education - and their own education. I look forward to seeing the FMA's review of Bliss technologies.

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Tumbler. Can you tell us about the hurdles.....

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