AAT upholds ASIC ban of client adviser
The Administrative Appeals Tribunal (AAT) has affirmed the Australian Securities and Investments Commission’s (ASIC) to ban Mark Menzies from providing financial services, after he had engaged in manipulation of the price of MINI Warrants commonly known as “MINIs”.
He was the sole director and officer of Menzies Securities Pty Ltd and was banned for a period of four years, until 28 January 2022, in its decision the AAT determined the ban be varied to expire on 31 December 2020.
ASIC’s decision to ban Menzies followed an investigation that found he had engaged in manipulation of the price of MINI warrants issues by Credit Suisse, a derivative product traded on the Australian Securities Exchange (ASX). This was through engaging in pre-arranged trades for the sole or dominant purpose of transferring a profit or loss from previous transactions.
A MINI is a type of derivative that derives its value from another ‘thing’ which is commonly referred to as the ‘underlying instrument’. The underlying instrument of a MINI may be a share, a share price index, a pair of currencies or a commodity.
The AAT found Menzies had contravened s.1041A of the Corporations Act 2001 and noted: “for the holder of an Australian Financial Services licence to be involved in a breach of s.1041A of the Act, conduct which involved market manipulation, is very serious, and such as to merit a banning order in both the public interest and in order to deter others from embarking upon such activity, and also to encourage confidence in the market and its operators.”
AUTHOR
Chris Dastoor
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
