Adviser banned for four years for derivatives manipulation
The Australian Securities & Investments Commission (ASIC) has banned client adviser Mark Menzies from providing financial advice for four years for manipulating the price of derivatives.
The regulator banned Menzies, the sole director and officer of Menzies Securities Pty Limited, following an investigation which found he had manipulated the price of 'MINI' warrants issued by Credit Suisse.
ASIC said it found the prices at which Menzies and Credit Suisse arranged to trade MINIs were designed to transfer the profit or loss from previous transactions and had, or were likely to have, the effect of creating an artificial price for trading in the affected MINIs on the ASX.
ASIC also found that Menzies Securities had not kept all necessary records of client instructions as required.
As the sole director and operator of Menzies Securities, ASIC found that Menzies was knowingly involved in Menzies Securities' contraventions.
Menzies was banned by ASIC with effect from 19 July, 2016, but Menzies subsequently appealed the decision to the Administrative Appeals Tribunal (AAT) and sought a stay of the banning.
On 9 September 2016, the AAT granted Menzies a conditional stay pending review of the decision. On 22 March, 2018, the AAT revoked the stay and the effect of the banning continued.
Menzies is now banned until 28 January, 2022, pending review, ASIC said.
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