Insider trading results in ASIC ban
The Australian Securities and Investments Commission (ASIC) has banned Melbourne broker Mark Richard McKenzie from providing financial services for three years after it found that he had engaged in insider trading.
An ASIC investigation found that in 2006, while employed as a broker with Citigroup Wealth Advisers, McKenzie possessed inside information relating to a potential takeover of Vision Systems Limited.
McKenzie purchased shares in the publicly-listed company and advised four of his clients to do the same, ASIC found.
Former Citigroup broker Colin Hebbard was also banned for five years for communicating inside information on Vision Systems to McKenzie and three of his clients and advising them to purchase the stock.
The Administrative Appeals Tribunal upheld ASIC’s banning of McKenzie.
AUTHOR
Mike Taylor
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
