ASIC has banned the head of Investment Banking for a NSW firm from providing financial services for three years.
Mark Hinsley, current director of Foster Stockbroking (FSB) received the ban after an ASIC investigation into both himself and the company raised concerns.
ASIC’s investigations found issue regarding conduct relating to the allocation of shares in the IPO of Reffind Ltd and a publication of a research report by Foster Stockbroking about Reffind.
Foster Stockbroking was the sole lead manager for the IPO of Reffind, a small cap tech company whose IPO was heavily over-subscribed.
Mr Hinsley was principally responsible in his role as Head of Investment Banking for the provision of corporate advisory services to Reffind at the time, he was also the author of the research report.
The investigation found that Mr Hinsley had engaged in misleading or deceptive conduct contrary to the Corps Act by failing to disclose to Reffind that a proportion of their shares in the IPO had been allocated to nominee accounts controlled by Mr Hinsley and fellow Foster directors.
ASIC also found that the research report contained assumptions and statements that had no reasonable grounds and that Mr Hinsley was not acting fairly and with adequate arrangements to manage conflicts of interest by authoring the report.
“Licensees, their officers and employees who are appointed to manage equity raising transactions must act appropriately, comply with the law and ensure that the services provided are done so in an efficient, honest and fair manner,” said ASIC Commissioner Cathie Armour.