Insider trading allegations

A former junior employee of Heartland Bank has been accused by the Financial Markets Authority (FMA) of insider trading relating to the buying and selling of shares in the bank’s parent company.

The FMA alleges the individual traded, and encouraged others to trade or hold, Heartland Group Holdings Ltd shares on a number of occasions between July 2020 and February 2021, while holding material information that was not generally available to the public.

“The individual also disclosed material information that was not generally available to the public to others,” says the FMA. 

“The individual was a junior Heartland Bank Ltd employee at the time of the alleged offending.” 

The matter was first referred to the FMA by NZ RegCo, NZX’s regulator, in December 2020. 

Criminal proceedings have been filed against the accused and they appeared in Auckland District Court on September 17.

The Heartland Group and Heartland Bank are not parties to the FMA proceedings and have co-operated with officials during their investigation. 

Greg Tomlinson, the group’s chairman, and Jeff Greenslade, chief executive officer, say Heartland supports the FMA’s commitment to fair and transparent capital markets. 

“We take our responsibilities as a listed company very seriously,” they add. “That includes having policies and procedures in place to ensure directors and employees at all levels understand their obligations under insider trading laws.” 

As the matter is before the courts, Heartland notes it will be making no further comment on the proceedings. 

Criminal insider trading by individuals can be punishable with a prison term of up to five years, a fine of up to $500,000, or both.