The Australian Securities Exchange (ASX) Disciplinary Tribunal has imposed a total fine of $125,000 on Bell Potter Securities for four contraventions of ASX market rules.
The firm contravened ASX market rules in relation to trades made on behalf of a client without express client instructions, and also breached its own policy relating to trading on staff accounts and the unprofessional conduct of an adviser.
The first contravention involved an adviser entering into a market transaction for the sale of 3.7 million fully paid ordinary shares in Quest Petroleum at one cent on behalf of a client, without the prior express instructions of the client.
The second contravention involved that of the adviser allocating the Quest Petroleum transaction to the client’s account without the prior express instructions of the client.
The third contravention, between December 2006 and February 2010, saw Bell Potter fail to approve separately and in writing 432 orders that gave rise to 713 market transactions initiated by an adviser on behalf of two corporate clients, where the adviser was the sole beneficial owner of those companies.
The fourth contravention, between December 2006 and February 2010, involved the adviser engaging in conduct that amounted to impropriety affecting professional character and which is indicative of a failure either to understand or to practise the precepts of honesty and fair dealing in relation to other market participants, clients or the public.
For these four breaches, which Bell Potter did not contest, the tribunal imposed a total fine of $125,000, which comprised a $20,000 fine for contraventions one and two, and a $25, 000 and $80,000 fine for contraventions three and four respectively.
“The tribunal’s opinion is that this sanction will serve as a deterrent to this participant and other participants and their representatives from engaging in similar misconduct, while at the same time appropriately serve the interests of ASX and market participants by supporting the integrity of the market it operates,” the ASX Disciplinary Tribunal Circular said.
