‘Ex-adviser’ banned over market manipulation
An investigation by the Australian Securities and Investments Commission (ASIC) has led to a former ‘adviser' being banned from providing financial services for three years.
ASIC found that Tony Davidof engaged in manipulation of the price of MINI warrants issued by Credit Suisse, on 21 February and 3 June 2013.
"Davidof took part in back-to-back buy and sell trades in MINIs on ASX with a former employee of Credit Suisse after the pair had pre-arranged the price, volume and approximate timing of the trade," ASIC said.
"On each occasion, in the preceding days, the former employee had traded SPI Futures on behalf of Mr Davidof resulting in a loss (in February) and a profit (in June) for Mr Davidof.
"ASIC found that the prices at which Mr Davidof and the former employee arranged to trade MINIs were designed to transfer the profit/loss from all the preceding trading, without reflecting the SPI Futures that were actually traded.
"This was likely to have the effect of creating an artificial price for trading in the affected MINIs on ASX."
AUTHOR
Nicholas O'Donoghue
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
