In March 2017, the Financial Markets Authority (FMA) filed charges over share trading in Eroad Limited. A current and a former Eroad employee were alleged to have breached the Financial Markets Conduct Act 2013 (FMCA) prohibitions on disclosing or trading inside information.
The FMA alleged that the former employee had traded 15,000 Eroad shares after the current employee had provided confidential information on Eroad’s performance. The FMA also claimed that one of the individuals had obstructed its investigation.
The FMA has now withdrawn the obstruction charges, after one of the individuals pleaded guilty, on 11 April 2017, to having been an information insider advising or encouraging another person to trade. That individual will be sentenced on 13 June 2017. The other individual still faces a charge of insider trading, but has not yet appeared in court.