Societe Generale charged by ASIC
Societe Generale Securities Australia (SGSA) has been charged with breaching client money obligations by the Australian Securities and Investments Commission (ASIC).
On 17 March, SGSA appeared in the Downing Centre Local Court in Sydney on criminal charges, which included two counts of failing to pay client money into segregated authorised bank accounts and two counts of failing to comply with requirements relating to a client money bank account.
ASIC alleged between December, 2014 and September, 2018, SGSA failed to comply with client money obligations, in contravention of criminal offence provisions under sections 993B(1) and 993C(1) of the Corporations Act 2001.
Client money provisions protected the interests of clients of Australian financial services licensees (AFSL) by separating client money from money belonging to licensees.
ASIC said breaching this provision was serious misconduct that risked undermining investor confidence.
The maximum penalty for each charge was 250 penalty units, which would be approximately $45,000.
The Commonwealth Director of Public Prosecutions was prosecuting the matter, which had been adjourned for a Case Management Hearing on 12 May, 2020.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
