MG RE fined $650,000

ASIC penalty responsible entity

18 December 2017
| By Oksana Patron |
image
image
expand image

The Federal Court has ordered MG entity responsible (RE) to pay a penalty of $650,000 for contravening its continuous disclosure obligations, and to pay the Australian Securities and Investments Commission’s (ASIC) legal costs.

According to the court, MGRE had failed to notify the Australian Securities Exchange (ASX) of new circumstances under which Murray Goulburn Co-operative was unlikely to achieve its forecast, as stated by MG and MGRE in their ASX announcement dated 29 February, 2016.

Following this, ASIC issued proceedings against MGRE in November, 2017 and as a result MGRE admitted the contravention in a Statement of Agreed Facts and Admissions and the parties had filed joint submissions for a declaration and a civil penalty to be imposed.

The regulator also said that it would also issue to MGRE an order to recover a contribution towards ASIC’s investigation expenses of $50,000 under s91 of the ASIC Act.

ASIC’s commissioner, Cathie Armour commented: “If an entity has previously given a profit forecast to the market and that subsequently changes causing its profit forecast to differ from that guidance by a material amount, it is crucial to inform the market immediately in order that investors are apprised with up-to-date information.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 5 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 11 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 9 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 12 hours ago