Sydney based securities dealer Chapel Road has had its dealer’s licence revoked by the Australian Securities and Investments Commission (ASIC).
The action by ASIC is one of the first for a major dealer group. Chapel Road has about 39 advisers in 39 offices.
ASIC found Chapel Road breached licence conditions by failing to have an adequate compliance system in place and failing to obtain the technical knowledge needed to perform its responsibilities. ASIC also found the group failed to provide adequate initial and ongoing training to its proper authority holders as well as adequate supervision of them.
The industry watchdog began its review of the group after the January 2000 ban of Steven Michael Cochrane, then a Chapel Road proper authority holder. Cochrane was banned for life from acting as a representative of a securities dealer or investment adviser, after ASIC found he had not performed the duties of a dealer representative efficiently, honestly and fairly.
Chapel Road has applied to the AAT for a review of ASIC’s decision to revoke its licence, and for a stay of the order subject to that review.
