Societe Generale charged by ASIC

18 March 2020
| By Chris Dastoor |
image
image
expand image

Societe Generale Securities Australia (SGSA) has been charged with breaching client money obligations by the Australian Securities and Investments Commission (ASIC).

On 17 March, SGSA appeared in the Downing Centre Local Court in Sydney on criminal charges, which included two counts of failing to pay client money into segregated authorised bank accounts and two counts of failing to comply with requirements relating to a client money bank account.

ASIC alleged between December, 2014 and September, 2018, SGSA failed to comply with client money obligations, in contravention of criminal offence provisions under sections 993B(1) and 993C(1) of the Corporations Act 2001.

Client money provisions protected the interests of clients of Australian financial services licensees (AFSL) by separating client money from money belonging to licensees.

ASIC said breaching this provision was serious misconduct that risked undermining investor confidence.

The maximum penalty for each charge was 250 penalty units, which would be approximately $45,000.

The Commonwealth Director of Public Prosecutions was prosecuting the matter, which had been adjourned for a Case Management Hearing on 12 May, 2020.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 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....

17 hours 43 minutes ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago