Following an investigation, ASIC has banned a former financial adviser from providing financial services for three years as a result of market manipulation.
In a statement issued by the regulator, ASIC said that on 21 February and 3 June 2013,Tony Davidof and a former Credit Suisse employee took part in back-to-back buy and sell trades in MINIs on ASX after they had pre-arranged the price, volume and timing of the trade, the statement said.
"ASIC found that the prices at which Mr Davidof and the former employee arranged to trade MINIs were designed to transfer the profit/loss from all the preceding trading, without reflecting the SPI Futures that were actually traded," the statement said.
"This was likely to have the effect of creating an artificial price for trading in the affected MINIs on ASX."
Mr Davidof has the right to appeal to the Administrative Appeals Tribunal for a review of ASICs decision.
ASIC does not say who Mr Davidof was licensed by.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 09:50McMaster: Where was ASIC on Beacon, CBA and AMP?By James Mitchell
- 18 Sep 2018Peter Kell resigns as deputy chair of ASICBy Eliot Hastie
- 18 Sep 2018Two former Macquarie advisers given 10-year banBy Adrian Flores
- 10:35Raiz addresses Millennial advice gap with chatbotBy Reporter
- 18 Sep 2018FASEA a ‘disaster’ destroying the industry: AIOFPBy James Mitchell
- 10:35Advisers granted statutory declaration rightsBy Adrian Flores
- view all