Professor Berna Collier (right), Commissioner for the Australian Securities and Investments Commission (ASIC), with Securities Commission Chairman, Jane Diplock AO. Professor Collier led a visit to New Zealand by ASIC representatives in December. The visit formed part of recent moves to further develop our close working relationship with ASIC, and to maximise opportunities for harmonisation and co-operation on issues of mutual interest. Insider trading proceedings filed against Provenco Group The Securities Commission filed insider trading proceedings relating to share trading in Provenco Group Limited in the High Court in Auckland last month. Provenco was known as Advantage Group Limited until March 2003. The defendants named in the proceedings are: the company, Provenco Group Limited, Jeda Investments Limited, Nicholas Peter Gordon as trustee of the Waimea Trust, Anthony Howard Bradley as trustee of the Bradley Family Trust, and David John Wolfenden. Nicholas Gordon and David Wolfenden are directors of Provenco, and Anthony Bradley is a former director. David Wolfenden is a director of Jeda Investments Limited. The Commission's claim relates to three phases of trading in Provenco shares: between 28 February and 26 March 2003, when three of the defendants bought 840,000 shares; on 6 and 7 March 2003, when there was a compulsory sale of 339,764 shares held by shareholders with less than 1000 Provenco shares; and on 2 May 2003, when Provenco itself bought 4,262,517 shares, or 4.97% of the total shareholding. At the times of trading each of the defendants was an insider in Provenco and in possession of inside information that was not publicly available. The inside information related to: the company's internal profit calculations;	Insider trading charges settled with former Tranz Rail chief executive The Commission has reached a settlement of the insider trading proceeding brought against Michael Beard, the former managing director and chief executive officer of Tranz Rail. Mr Beard has agreed to pay the full amount of the Commission's compensation claim of $55,691.84 and $100,000 of the Commission's claim for penalty and costs, a total of $155,691.84. Mr Beard has agreed to make this payment without any admission of liability. He acknowledged at that time that he was or may have been in possession of inside information when he traded the shares in question as a result of his position as an officer and director of Tranz Rail. He also acknowledges that, as a result, the Commission had a case against him under the Securities Markets Act 1988. He considers, however, that he had a defence to that case. Mr Beard has also agreed to assist the Commission with its case against the remaining defendants in the proceeding. The settlement has been approved by the High Court. No judgment has been entered against Mr Beard. Additional information on the settlement is included in the news release of 23 December 2004, available on www.seccom.govt.nz.   ALSO IN THIS ISSUE: Fund managers pricing inquiry Bay of Plenty fraud campaign IOSCO update

(continued page 2)

THE BULLETIN January 2005

[Page 1] || [Page 2] || [Page 3] || [Page 4]