ASIC banning upheld after appeal
A decision to ban former securities representative Jan Jungstedt for five years by theAustralian Securities and Investments Commission(ASIC) has been upheld by the Administrative Appeals Tribunal (AAT).
Jungstedt, a former representative of Epic Securities (Epic), was banned by ASIC in February 2000 after the regulator found he had not performed his duties as a representative efficiently, honestly and fairly.
ASIC determined that Jungstedt had recommended options trading to clients though it was not in their best interest and failed to properly advise them of the risks associated with the trading strategy.
It was also found that Jungstedt had operated discretionary accounts for clients without obtaining required written authorisation.
In affirming the banning order, the AAT found Jungstedt had exercised his discretionary power in respect of his clients to undertake trades that were excessive in size or frequency in breach of theAustralian Stock Exchangebusiness rules.
It also found that he had continued to carry on business as an investment adviser even after ceasing to hold a proper authority from Epic.
Jungstedt's clients lost over $1.8 million as a result of using the options trading strategy he recommended.
ASIC also revoked the license of Epic on 29 February 2000.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
