Four face insider-trading charges related to computer chip maker Rakon

Four people face charges of insider trading related to computer chip maker Rakon, which delisted from the NZX in May, after shareholders accepted a takeover offer.

The Financial Markets Authority said Rakon was not a party to the proceedings heard in the Auckland District Court on Thursday.

"People need to be able to trust that our markets are fair," FMA head of enforcement Margot Gatland said.

"Insider trading undermines that trust and confidence, which is why tackling insider conduct is a priority for the FMA."

Michael Walter Daniel was charged under sections 240(1), 241(1), (242)(1) and 244 of the Financial Markets Conduct Act and s 66(1) of the Crimes Act.

"These are serious allegations and I am working through them carefully with my legal advisers," Daniel told RNZ.

"The charges concern events surrounding discussions about a potential takeover of Rakon, over three years ago [in late 2023], which ultimately did not proceed," he said, adding the charges were not related to the recent takeover completed in May.

He declined to offer additional details about the case.

Paul Louis Smit was also charged under the Financial Markets Conduct Act.

Two other individuals were granted interim name suppression.

The FMA said it could not comment on the evidence, the identities of the other individuals or other matters that could prejudice the proceedings.