The Financial Services Board (FSB) investigation into Pinnacle Holdings has been closed, with no action being taken against the company, it was announced on Tuesday (16 September).<\/p>\n
“The company was informed today that the Directorate of Market abuse at the FSB, at a meeting on 16 September 2014, decided to close the investigation and no enforcement action will be taken,” Pinnacle said in a statement.<\/p>\n
The financial services regulator opened an investigation looking potential insider trading in shares of technology firm in April 2014, following the arrest of a director in March.<\/p>\n
The Pinnacle director, Takalani Tshivhase, was arrested on charges bribing a senior police official in order to win a contract for the company. The charges and case against Tshivhase were dropped in August<\/strong>.<\/p>\n Despite the charges being dropped, the news had a significant impact on the company’s performance on the JSE, where it saw its stock price almost halved in the weeks following Tshivase’s arrest.<\/p>\n Pinnacle waited 20 days to announce the arrest, during which time Tshivhase, chief executive Arnold Fourie and another director all sold Pinnacle shares.<\/p>\n Fourie rejected any insider trading at the company.<\/p>\nMore on Pinnacle<\/h3>\n