Sydney stockbroker banned, appeal pending
A Sydney stockbroker has been banned after investigations found he had engaged in market manipulation and misleading and deceptive conduct, although he can continue to work pending his appeal.
The Australian Securities and Investments Commission (ASIC) banned William Frederick Klusman from providing financial services for three years after it found that he had procured secret profits for relatives when purchasing shares for Regional Express Holdings during the airline’s on-market share buy-back.
In April 2008 while Klusman was working for Aequs Securities, now known as Anziex, he was instructed by Regional Express Holding to purchase shares on its behalf.
ASIC found that on several occasions between December 1 and 18, 2008, Klusman entered the market or caused bids and asks on the Australian Securities Exchange (ASX) that resulted in him buying parcels of Regional Express Holdings shares for his relatives, which he then sold to Regional Express Holdings at a higher price. In doing so, ASIC considered Klusman had engaged in market manipulation and misleading and deceptive conduct.
The investigation followed a referral from the ASX.
ASIC also found that he had engaged in misleading and deceptive conduct on September 17, 2008, when he made a statement that he had heard a rumour that Macquarie Group was going to announce a rights issue, when he had no reasonable basis for making this statement.
Klusman has appealed ASIC’s decision to the Administrative Appeals Tribunal, which granted him a conditional stay that allowed him to continue to provide financial services for his current employer until the determination of his appeal.
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.
