Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Information Control in Market Participant Firms

News release

14 November 2005

Information Control in Market Participant Firms

The Securities Commission has issued a report highlighting the need for market participants to have good information controls (Chinese walls).

This report arises from the Commission’s inquiry into trading in shares of Wrightson Limited in June 2004.

The report concerns activities of ABN AMRO Craigs Limited, a NZX firm, during a takeover offer in 2004. The firm, acting for the offeror in the takeover, received non-public information that a substantial security holder intended to accept the takeover offer. It passed this information on to two other NZX firms, and to its own client advisers, before the information was released to the market.

The Commission’s inquiry arose from a complaint by Wrightson Limited, the company which was the subject of the takeover.

“The decision by ABN AMRO Craigs Limited to distribute non-public and potentially sensitive information about the takeover to select firms and to its client advisers ahead of the market being informed was inappropriate and was not required by its client mandate”, Commission Chairman Jane Diplock said.

“Selective disclosure of information in this way, while not unlawful, is not acceptable practice on the part of a market participant. This case illustrates the need for all market participants to have robust information controls.”

The inquiry highlights that market participants not only need to have policies and procedures in place, but also to ensure that people handling non-public and price sensitive assignments are aware of and adhere to these procedures.

The Commission’s report, “Information Control in Market Participant Firms” is available at or by contacting the Commission on 04 472 9830.


© Scoop Media

Business Headlines | Sci-Tech Headlines


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>