Despite our view on the potential contravention of the continuous disclosure obligation, the FMA has decided to conclude the investigation and not to pursue enforcement action against Wynyard. Wynyard is now in liquidation and its shares no longer trade on the NZX. There is, therefore, no reasonable prospect of recovery for investors. Further, it is clear from our investigation activities to date that there will be uncertainty around any litigation against the company, and we do not consider an action against directors would have a reasonable prospect of success. We do not consider that we can justify taking action solely for precedent value.
This report sets out the FMA conclusions following an investigation into the compliance of Wynyard Group Limited with its continuous disclosure and fair dealing obligations. The investigation considered the period leading up to the company’s failure in late 2016. While this report reflects the FMA’s views, the investigation relating to continuous disclosure was completed jointly with NZX Regulation. See media release.