1 Jul 2013

FMA finds market alerts being filed late

2:03 pm on 1 July 2013

A review by the Financial Markets Authority has found more than a fifth of substantial shareholder notices are not filed within a timeframe the regulator considers acceptable.

Substantial shareholder notices alert the market when major shareholders of a particular stock are buying or selling shares and are supposed to be filed immediately after changes of more than one percentage point.

The FMA examined notices to the stock exchange over a five-week period and found some 12% were made more than a week after the relevant event.

Head of compliance monitoring Elaine Campbell says the penalties for failing to file such notices include a summary conviction and a fine of up to $30,000, while civil remedies include forfeiture of shareholdings or removal of voting rights.