Friday 14th December 2012
|Text too small?|
A second unnamed NZX adviser has been fined over a rule breach related to auction site Trade Me's $363.5 million initial public offering last December.
The adviser must pay $16,000 to the NZX Discipline Fund plus costs, the regulator said in a statement. The breaches relate to both the Trade Me and Summerset IPOs last year.
NZX regulation said the adviser had developed a personal relationship with a client which under the rules makes the client a prescribed person, meaning they'd need written authority from the firm to participate in the offer.
In October 2011, the adviser lent the client $42,000 which the client used to buy 30,000 shares in the Summerset IPO. The client sold the shares in November and used the funds, plus some of their own to buy 18,700 shares in the Trade Me IPO.
In December the client transferred 15,000 Trade Me shares to the adviser via an off-market transfer. NZX Regulation said mitigating factors were that no client suffered a direct loss as a result of the breaches and the adviser has since faced disciplinary action from their firm.
Last week an unnamed adviser was fined $10,000 settlement after being found out on a backroom deal to get Trade Me shares during the IPO.
That adviser used a client to get their hands on 1,500 Trade Me shares in the IPO.
The Trade Me IPO allowed ailing Australian publisher Fairfax Media to sell down its holding and used the funds elsewhere in its business. The shares sold at $2.70 in the IPO. They last traded at $4.03, having gained 49 percent from the initial sale price.
UBS New Zealand was the sole lead manager and underwriter of the float.
No comments yet
Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured