FMA clears NZX of possible disclosure breaches
The Financial Markets Authority has found stock exchange operator NZX not guilty of breaching continuous disclosure obligations following an inquiry.
The Financial Markets Authority has found stock exchange operator NZX not guilty of breaching continuous disclosure obligations following an inquiry.
The issue related to comments made by NZX chief executive Mark Weldon concerning the carrying value of its subsidiary Clear Grain Exchange.
In an employment court hearing in Melbourne in May Mr Weldon said Clear was not performing and would make a substantial loss, while in its annual report released in March NZX said the unit was demonstrating real momentum.
NZX commissioned a review by auditor KPMG, which decided no impairment to Clear’s value was needed.
In a statement this morning the FMA said it was now satisfied NZX was not in breach of its continuous disclosure obligations as an issuer under the Securities Markets Act 1988.
The regulator considered responses from NZX chairman Andrew Harmos and NZX’s market announcement of July 18, as to the value of Clear Grain Exchange.
“FMA is also now satisfied that the recent sale of NZX shares by Mr Weldon was conducted in a manner compliant with applicable financial markets legislation,” the statement added.
The FMA says it does not propose to take any regulatory action based on the information currently available to it in relation to these issues.
Duncan Bridgeman
Wed, 03 Aug 2011
Wed, 03 Aug 2011
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FMA clears NZX of possible disclosure breaches
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