Expert:  market manipulation; compliance

FMA investigated Milford’s oversight of the trading of Mark Warminger between December 2013 and August 2014 and concluded that Milford, as the portfolio manager’s employer, engaged in market manipulation in breach of section 11B of the Securities Markets Act 1988 (SMA). Applying section 11B, the FMA alleged that Milford ought reasonably to have known that the actions of its portfolio manager would have, or would have been likely to have, “the effect of creating, or causing the creation of, a false or misleading appearance with respect to the extent of active trading in the securities, or with respect to the supply of, demand for, price for trading in or value of those securities”. It concluded there was a failure to adequately monitor Milford’s trading activity so as to identify and intervene in the sort of trading activity under investigation.

Description: market manipulation; compliance