Adviser banned for four years for derivatives manipulation

The Australian Securities & Investments Commission (ASIC) has banned client adviser Mark Menzies from providing financial advice for four years for manipulating the price of derivatives.

The regulator banned Menzies, the sole director and officer of Menzies Securities Pty Limited, following an investigation which found he had manipulated the price of 'MINI' warrants issued by Credit Suisse.

ASIC said it found the prices at which Menzies and Credit Suisse arranged to trade MINIs were designed to transfer the profit or loss from previous transactions and had, or were likely to have, the effect of creating an artificial price for trading in the affected MINIs on the ASX.

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ASIC also found that Menzies Securities had not kept all necessary records of client instructions as required.

As the sole director and operator of Menzies Securities, ASIC found that Menzies was knowingly involved in Menzies Securities' contraventions.

Menzies was banned by ASIC with effect from 19 July, 2016, but Menzies subsequently appealed the decision to the Administrative Appeals Tribunal (AAT) and sought a stay of the banning.

On 9 September 2016, the AAT granted Menzies a conditional stay pending review of the decision. On 22 March, 2018, the AAT revoked the stay and the effect of the banning continued.

Menzies is now banned until 28 January, 2022, pending review, ASIC said.



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This person had a Commerce degree and also a GradDipAppFin. Yet these 2 good qualifications did not stop the problem of poor behavour (subject to appeal). I encourage O'Dwyer and others who are putting all their reputation on the new education standards to consider why the education did not stop this situation and why the future will be different. Putting your name to a failure is never a good resume line.

I see credit Suisse was not sanctioned for their major part in the scandal.

From my knowledge Citibank, macquaire bank and credit Suisse were all involved and ASIC has chosen to hang out the "small fry".

There have been 4 people banned from these allegations all "small fry". They all appealed the decision independatly. Not one bank has been sanctioned for thier part in the matter.

Is there not a royal comission into the banks? Waky waky.

This is also the same with the options traders that were hung out by the big m a few years back, it was all well and good to make brokerage for them on the options trades , however once ASIC came sniffing about to look at the discretionary trading that was happening, the traders were the ones hung out to dry....the managers however, still work there. This is where ASIC is gutless, take the low hanging fruit thats all they seem to do.

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