Recent investigations by the Australian Securities and Investments Commission (“ASIC”) have resulted in the imposition of substantial bans on two financial services brokers for insider trading offences, in contravention of the Corporations Act 2001 (Cth) (the “Act”).
Mr Mark Richard McKenzie (“McKenzie”), a broker employed by Citigroup Wealth Advisers Pty Ltd, was found by ASIC to have purchased shares in Vision Systems Limited (“VSL”) for himself, and to have advised four (4) of his clients to purchase shares in VSL, whilst possessing inside information relating to a possible takeover of VSL.
In a related incident, Perth based broker Mr Colin Hebbard (“Hebbard”) was found by ASIC to have communicated inside information on VSL to McKenzie and to three (3) of this clients.
ASIC determined that the conduct of McKenzie and Hebbard contravened section 1053A of the Act. Under section 920A of the Act, ASIC banned McKenzie and Hebbard from providing financial services for 3 years and 5 years respectively.
McKenzie appealed the decision of ASIC to the Administrative Appeals Tribunal (“AAT”). On review, the AAT upheld ASIC’s decision and affirmed the three (3) year ban imposed on by ASIC.
