Allegations that Investec conducted insider trading or misled the public about inflation have been dismissed for now, the Financial Services Board (FSB) said on Friday.

"We have completed a preliminary investigation into the complaint and the FSB is of the opinion that there is no merit in it."

On Wednesday the FSB received a complaint by trade union Solidarity that Investec may have deliberately tried to influence its share price with its announcement that the new inflation basket would lead to lower inflation.

On Thursday the union then withdrew the complaint. However the FSB said the withdrawal of the complaint would have no impact on the investigation.

"The FSB has a duty to investigate every matter that could amount to market abuse as prohibited in the Securities Services Act."

FSB said the matter would now be placed before the Directorate of Market Abuse at its next meeting on 2 September.

The directorate is a committee of the FSB which is responsible for determining whether action should be taken in cases of alleged market abuse.

"It is unfortunate that Solidarity allowed their complaint to become public knowledge before establishing whether it had substance," said the FSB.

Solidarity said it withdrew its complaint because it was clear after discussion with Investec that no insider trading had taken place.

The union said at the time that it still wanted clarity on the credibility of the new inflation basket as an instrument to measure true inflation.

Sapa