Analyst punished for passing on inside info
The Australian Securities and Investments Commission (ASIC) has banned a BNP Paribas telecommunications analyst from acting as a representative of a securities dealer for three years for passing on inside information.
Christopher Alan Savage was said to have advised fellow BNP Paribas employees about a deal in January this year, between struggling broadband specialist Davnet’s Hong Kong subsidiary and Hutchison Telecom, before any such announcement had been made publicly available to the market.
ASIC said Savage’s colleagues and their clients profited from the inside information made available by Savage when shares were traded before the market was informed.
ASIC director of enforcement Allen Turton says in a statement:
“Analysts must not convey any information to advisers or clients unless they are aware of the source of this information and believe it to be reliable.”
The securities watchdog says it expects Savage to appeal the decision.
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