EROAD suspends employee charged by FMA

TEL +64 9 927 4700 PO Box 305 394
FAX +64 9 927 4701 Triton Plaza, North Shore 0757 Page 1
FREE 0800 4 EROAD Auckland, New Zealand eroad.co.nz

Media release 9 March 2017
EROAD suspends employee charged by FMA
Technology services provider EROAD has suspended an employee against whom the Financial Markets
Authority (FMA) has filed charges relating to insider trading. The employee is not a member of the
senior executive team.
The FMA has filed charges alleging breaches of the insider trading prohibitions contained in the
Financial Markets Conduct Act 2013 by one current and one former EROAD employee.
EROAD Chairman Mr Bushby noted that the FMA action is directed at two individuals, and that
EROAD’s conduct is not the subject of investigation. EROAD supports and endorses the FMA’s
commitment to the integrity of the capital markets in New Zealand, and has fully co-operated with and
assisted the FMA throughout its investigation against the individuals. The matter relates to events in
2015.
EROAD is also considering bringing civil claims against both individuals for breach of confidence.
Mr Bushby said the suspension and possibility of civil claims were part of a response to what appeared
to be a serious breach of confidentiality, terms of employment, and the company’s code of ethics.
“Irrespective of the FMA action, we are taking appropriate disciplinary action regarding the alleged
sharing of confidential financial information for personal share trading,” he said. “We accord the
security of our company information the highest priority.”
Mr Bushby said that the company had been disappointed to learn about the alleged actions of two
individuals that led to the FMA’s proceedings. “As a listed company we take our responsibilities very
seriously and ensure that all our team has training and information to understand their obligations, the
importance and consequences of insider trading laws and our own responsibilities.
“We regard our values, ethics and integrity as a company as critically important and we strive to
maintain the highest standards,” said Mr Bushby.
He said that in reviewing the substantial amount of information that the company had provided the
FMA to assist it in its investigation against the individuals, EROAD was confident that no data about
staff, suppliers, customers or stakeholders had been compromised.
“The information relating to this matter concerns EROAD historic financial information allegedly used
for personal share trading,” he said.
“While this is nonetheless a serious matter, we can assure our stakeholders that we remain vigilant with
respect to protecting the integrity of our customer-facing systems and all third party data.”

TEL +64 9 927 4700 PO Box 305 394
FAX +64 9 927 4701 Triton Plaza, North Shore 0757 Page 2
FREE 0800 4 EROAD Auckland, New Zealand eroad.co.nz
He said that the company would be making no comment on the FMA’s proceedings, which were
matters before the courts. Questions on this matter should be addressed to the FMA.
Summary
• EROAD supports and endorses the FMA’s commitment to the integrity of the capital
markets in New Zealand, and EROAD has fully co-operated with and assisted the FMA
throughout its investigation against the individuals.
• Staff training and information on the disclosure of confidential information and share
trading is provided recurrently. Adherence to strict confidentiality requirements is a
condition of employment at EROAD.
• The FMA announcement relates to actions taken by two individuals in September 2015, and
EROAD’s conduct is not the subject of investigation. The FMA alleges that the former
employee traded 15,000 EROAD shares in this period.

A copy of the FMA media announcement is available at https://fma.govt.nz/news/media-releases/.

For further information: Michael Bushby
Chairman
Michael.Bushby@eroad.com

+64 9 927 4713
+61 418 679 963
ENDS