ASIC banning upheld after appeal
A decision to ban former securities representative Jan Jungstedt for five years by theAustralian Securities and Investments Commission(ASIC) has been upheld by the Administrative Appeals Tribunal (AAT).
Jungstedt, a former representative of Epic Securities (Epic), was banned by ASIC in February 2000 after the regulator found he had not performed his duties as a representative efficiently, honestly and fairly.
ASIC determined that Jungstedt had recommended options trading to clients though it was not in their best interest and failed to properly advise them of the risks associated with the trading strategy.
It was also found that Jungstedt had operated discretionary accounts for clients without obtaining required written authorisation.
In affirming the banning order, the AAT found Jungstedt had exercised his discretionary power in respect of his clients to undertake trades that were excessive in size or frequency in breach of theAustralian Stock Exchangebusiness rules.
It also found that he had continued to carry on business as an investment adviser even after ceasing to hold a proper authority from Epic.
Jungstedt's clients lost over $1.8 million as a result of using the options trading strategy he recommended.
ASIC also revoked the license of Epic on 29 February 2000.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
