First NZ Capital censured

AUCKLAND: First NZ Capital has been publicly censured and fined by NZX regulation over a complex trade of Auckland International Airport shares almost two years after the fact that led to a ‘‘disorderly market’’.

Stock market operator and supervisor NZX and FNZC reached a settlement over the December 30, 2016 trading on Tuesday, agreeing that the broking house breached several listing rules by accepting an order with ‘‘complex execution instructions’’ to sell 698,956 Auckland Airport shares, worth $4.6 million at the time, with volume and price restrictions, specific timeframes and limits on how the order could be traded. The shares fell 4.4% to $6.25 on the day, which was also the final trading day of the year.

The broker will pay a $45,000 penalty, plus $18,000 of costs to NZX, as part of the agreement that included public censure.

The NZ Markets Disciplinary Tribunal’s decision said FNZC’s trading was unintentionally ‘‘negligent’’ by failing to appreciate the risks of the order, ‘‘which led to a disorderly market’’.

Mitigating that, FNZC cooperated with the investigation and provided all information sought by NZX Regulation and did not benefit financially from trading for its client. It was an isolated event rather than ‘‘conduct which indicated broader systemic issues with FNZW’s trading’’.