FSCA clears Resilient companies of insider trading

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Group and its stablemates not yet out of the woods, however.

The Resilient group of companies has been cleared by the Financial Sector Conduct Authority of all wrongdoing relating to scathing allegations of insider trading of shares by its key directors and associates – a year after the biggest scandal hit SA’s listed property sector.

A cascade of reports compiled by asset managers and research firms, including 36OOne Asset Management and Arqaam Capital, have accused Resilient and its related parties – meaning companies associated with it and individuals close to Resilient executives – of trading large volumes of Resilient, Fortress, and Nepi Rockcastle shares with the intention of artificially boosting share prices.

“We have many other investigations into the Resilient group [about 13 cases]. In those investigations, we might pick up evidence that would have an impact on a particular investigation we have closed,” Pascoe told Moneyweb. Pascoe said the Greenbay Properties investigation is still ongoing because the regulator is still examining five bookbuilds that the company undertook between 2017 and 2018. He added that it is a complex investigation as the FSCA is working with international regulators to gather information as the company is Mauritius-domiciled.

The FSCA’s investigation is not centred on the company affairs of Resilient, Fortress, Nepi Rockcastle and Greenbay. It focuses on share trades and disclosure on matters such as director dealings and bookbuilds to determine if there has been market manipulation.Craig Smith, head of research and property at Anchor Stockbrokers, says the sooner the investigations into the related companies are finalised, the better for investors and the sector.

 

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