Credit Suisse pays $95,000 penalty
Credit Suisse Equities Australia has paid a penalty of $95,000 for not having in place adequate resources for its Automated Order Processing (AOP) system to account for corporate actions, according to the Australian Securities and Investments Commission (ASIC).
ASIC said this resulted in the interference with the efficiency and integrity of the market, resulting in the market failing to be fair and orderly for a particular stock.
Credit Suisse entered an order on behalf of the client to sell shares in Hastie Group, which resulted in a 48 per cent decrease in price from a ‘reconstruction' (share consolidation) which occurred on the day.
The order did not generate any price-based AOP alerts, despite the deviation from the reconstruction-adjusted last traded price.
The regulator said Credit Suisse became aware of the executed part of the order when contacted by ASIC an hour and a half later, after which the firm requested cancellation of the executed part of the order.
However, the cancellation was denied due to the length of time between execution and request for cancellation, which was three hours.
The ASIC-controlled Market Disciplinary Panel decided to issue Credit Suisse with an infringement notice specifying a total penalty of $95,000.
AUTHOR
Staff Writer
Recommended for you
An former financial adviser based in Sunshine Coast has been permanently banned by ASIC after being sentenced to six years imprisonment for fraud
This senior consultant has emphasised why ‘playing the long game’ of cultivating a desirable work culture is vital for high-performing financial advice firms and their teams.
With superannuation funds and financial advisers being the top two sources of information for retirees, a TAL white paper has revealed which they turn to first.
Newly launched wealth technology platform HeirWealth has appointed multiple senior industry figures to its advisory board including former MLC CEO Geoff Lloyd as chair.
