Former financial adviser’s appeal upheld
The Administrative Appeals Tribunal (AAT) has upheld an appeal by Tony Davidof, a former financial adviser, against the Australian Securities and Investments Commission's (ASIC's) decision, which banned him from providing financial services for three years.
ASIC confirmed that it was considering appealing the AAT's decision to the Federal Court.
In December, 2015, Davidof was banned from providing financial services after an ASIC investigation found he had been engaged in manipulation of the price of MINI warrants, a type of derivative product traded on the Australian Securities Exchange (ASX), which were issued by Credit Suisse.
However, the AAT decided that the MINI warrants in this case were not a derivative under the Corporations Act and therefore not financial products.
According to ASIC, the prices at which Davidof and another former employee were trading MINIs in 2013 were designed to transfer the profit/loss from all the preceding trading, without reflecting the SPI Futures that were actually traded and this was likely to have the effect of creating an artificial price for trading in the affected MINIs on the ASX.
AUTHOR
Oksana Patron
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
