Strategic fined by NZX for poor disclosure

Strategic Finance has been fined NZ$20,000 by the NZX for breaching disclosure rules by releasing material information to third parties prior to its disclosure to the market through NZX. Interest.co.nz reported on August 8 that Strategic Finance Chief Executive Kerry Finnigan had written to financial advisors detailing a proposed recapitalisation plan that had not been agreed by its controlling shareholder Allco HIT or announced to the New Zealand and Australian stock exchanges. Here is the announcement below from the NZX:

NZX Discipline has issued a ruling today against Strategic Finance Limited for breach of the continuous disclosure rules. NZX Discipline has ruled that Strategic Finance breached the rules by releasing material information to third parties prior to its disclosure to the market through NZX.

Strategic Finance accepts it breached the rules on disclosure, but says it did so inadvertently while providing explanations to brokers regarding some capital restructure planning options that Strategic Finance was exploring. The disclosure occurred during a period when a trading halt was in place and NZX Discipline acknowledges in its ruling that the beach was not intentional and that security holders were not harmed by the breach.

Strategic Finance has in place an appropriate procedure for ensuring that it complies with the continuous disclosure compliance regime. The directors and senior management of Strategic are aware of the Company's continuous obligations and Strategic has supported NZX in it recent requests for monthly confirmations of compliance with the NZX rules by listed finance companies.

"We have learned from this. While we still want to let investors know what is going on, we will make sure we get the sequence right in the future," Mr Finnigan said.