Perth adviser cops three-year ban
The Australian Securities and Investments Commission (ASIC) has banned a Perth-based financial adviser for a period of three years for market rigging.
James Pearson, a former client adviser at stockbroking firm DJ Carmichael, was found guilty by the regulator of creating a “false or misleading appearance of active trading” and engaging in “conduct inconsistent with the orderly operation of a financial market”.
“Between 12 May and 15 July 2011, Mr Pearson placed 20 orders on the ASX as part of an on-market buyback of units in the LinQ Resources Fund,” an ASIC statement said.
“ASIC found Mr Pearson’s bids were for a purpose other than giving effect to the buyback. Mr Pearson was found to have placed the orders late in the day, causing the closing share price of the LinQ Resources Fund to be relatively high, thus creating a false or misleading appearance in the price for trading in the stock,” it continued.
Pearson has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
What is the value of an adviser?
A new report has dived into the value of advisers and found that they deliver va...
Expect industry overhaul: FPA
Financial planning is set to have a revamp, the Financial Planning Association o...
Industry needs to speak the language of women
The adviser industry still has work to do in finding a way to speak the language...