Pershing pleads guilty to mishandling client money

ASIC guilty

6 May 2020
| By Jassmyn |
image
image
expand image

Pershing Securities Australia (PSAL) has pleaded guilty to mishandling client monies and in turn is the first company in Australia to face criminal prosecution for breaching client money provisions.

The Australian Securities and Investments Commission (ASIC) said in an announcement that the provisions were designed to protect the interests of Australian financial services licensee clients by ensuring that client money was kept separate from licensee money.

PSAL pleaded guilty at the Downing Centre Local Court in Sydney to:

  • Breaching s993B(1) between 25 January, 2016, and 31 December, 2018, by receiving money in connection with financial services, and then failing to pay that money into an account that satisfied the client money requirements within s981B of the Corporations Act 2001; and
  • Breaching s993C(1) between 30 June, 2016, and 16 December, 2017, through making payments out of a client money account that were not permitted by reg 7.8.02 of the Corporations Regulations.

ASIC said each offence carried a maximum penalty of 250 penalty units (approximately $45,000).

PSAL also admitted guilt to a third s993B(1) breach that took place on 21 August, 2017.

ASIC noted that as part of the plea, PSAL would not be sentenced on this breach but it would be taken into account during sentencing for the other charges.

The matter has been listed for sentence on 27 July, 2020.

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...

2 days 12 hours ago

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

6 days 18 hours ago

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

3 weeks 4 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 6 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 ...

5 days 16 hours ago

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

4 days 19 hours ago