Banned financial adviser, Mark Damion Kawecki, has pleaded guilty to two counts of dishonest conduct relating to meeting the minimum spread requirement for companies seeking to be admitted to the Australian Securities Exchange (ASX).
The Australian Securities and Investments Commission (ASIC) said the former Victorian adviser, who was banned in 2018, pleaded guilty to two counts of dishonest conduct contrary to s1041G of the Corporations Act 2001, namely:
- Engaging in dishonest conduct in relation to the submission of applications for shares containing false information about the applicant’s address to the share registry for three entities seeking admission to the ASX official list between about 19 January 2015 and 23 December 2016; and
- Engaging in dishonest conduct in relation to the submission of applications for shares and a table of applications for shares containing false or misleading information about the beneficial holder of shares to the share registry for a company seeking admission to the ASX official list and to a stockbroker assisting an entity’s re-admission onto the ASX official list between about 23 January 2015 and 9 July 2015.
ASIC said each offence carried a maximum penalty of 10 years imprisonment or a fine of up to 4,500 penalty units of both.
Under ASX listing rules, a firm must meet the minimum spread requirement before its shares can be quoted and traded on the ASX to ensure some liquidity and quality.