Background
Following an investigation by the Financial Markets Authority (FMA), criminal proceedings were commenced against Mark Stephen Talbot under the Securities Markets Act 1988 (SMA). The charges related to alleged misconduct involving insider trading and failures to disclose relevant interests as required under New Zealand securities law.
The FMA initially filed one charge of trading by an information insider, contrary to sections 8C and 8F of the SMA, and eight charges for failing to disclose a relevant interest, contrary to sections 19T and 19ZD. These charges arose from breaches of statutory disclosure obligations designed to ensure transparency and integrity in the securities market.
On 9 April 2019, High Court sentencing remarks recorded that the Crown Solicitor and Mr Talbot reached a resolution of the proceedings. As part of that resolution, Mr Talbot entered a guilty plea to one representative charge for breaching his disclosure obligations under sections 19T and 19ZD of the SMA. The remaining charges were resolved through this agreed outcome.
In addition to the criminal resolution, Mr Talbot entered into an enforceable undertaking with the FMA on 3 April 2019. Under this undertaking, he agreed that for a period of five years he would not act as a director or promoter of, nor be involved in the management of, a listed issuer as defined under the Financial Markets Conduct Act 2013.
As part of the enforceable undertaking, Mr Talbot also agreed to pay a penalty sum of $150,000, with the amount paid into a Crown Bank Account after deduction of the FMA’s actual investigation costs. This undertaking formed part of the overall regulatory response to the misconduct identified by the FMA.
