AAT upholds ASIC adviser banning
The Administrative Appeals Tribunal (AAT) has upheld the Australian Securities and Investments Commission’s (ASIC’s) decision to ban a former client adviser and authorised representative of stockbroking and wealth management firm, Morgans Financial Limited from providing financial services for five years.
The banning followed an ASIC investigation into Ryan Batros’ conduct on 25 and 26 August 2014, when he placed ‘execution only’ orders on the Australian Securities Exchange (ASX) that he had received from clients to sell shares and options in Metals of Africa Limited (MTA).
He had possession of information regarding impending capital-raising by MTA at that time. MTA then announced the capital raising to the ASX on 3 September 2014.
Batros had appealed to the AAT for a review of ASIC’s banning order.
ASIC commissioner, Cathie Armour said: “This outcome reinforces that an adviser must not execute a client order when in possession of material non-public information such as information about capital raisings – even when following a client's direct instructions”.
Batros can appeal to the Federal Court of Australia for a review of the AAT’s decision.
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