Ordered to reinstate licences
The Administrative Appeals Tribunal has upheld an appeal by Saxby Bridge Financial Planning Pty Ltd and ABS Securities, and required ASIC to reinstate their securities dealers licences.
If the AAT decision stands, the reinstated licences will be conditional, requiring: more effective disclosure of fees and commissions the securities adviser or associate may receive as a result of any recommendation; and more effective disclosure of any pecuniary or other interests that the securities adviser or associate may have that might influence that person in making a recommendation.
The AAT also ruled ASIC’s banning order on Jeffrey Braysich, preventing him from acting as a representative of a dealer or investment adviser for five years, should be lifted.
ASIC is considering appealing the decision in the Federal Court.
Comments on Rivkin sentence
Rene Walter Rivkin’s conviction and sentencing in the NSW Supreme Court on one count of insider trading in the shares of Qantas Airways Limited prompted comment from ASIC.
ASIC said the fact that Mr Rivkin had made a relatively small profit from the transaction did not alter its criminal nature.
Mr Rivkin had sought to trivialise the proceedings from the time they were first instituted, ASIC said, and in doing so had mocked every investor who expected fair dealing and proper disclosure in share market transactions.
Mr Rivkin’s deliberate decision to flout the law, even in a small transaction, was a betrayal of the market, ASIC said.
Concludes SFE trading inquiries
ASIC has concluded its inquiries into April 30 2003 trading in the SPI 200 contract on the Sydney Futures Exchange, stating it did not uncover any conduct which would warrant regulatory action.
ASIC commenced a review of trading based on concerns that late movements in the SPI 200 futures contract on April 30 may have been the result of trading with prior knowledge of the announcement of demerger proposals by AMP on May 1.
Executes interim orders regarding foreign insurer
ASIC has obtained interim orders in the Federal Court against Nikola Banicevic, and four Australian companies who have been writing insurance on behalf of an unauthorised foreign insurer, Bosnian-based insurer Grand Osiguranje AD Zvornik.
ASIC is concerned that Grand has not authorised any of the four companies or any of their representatives to act as a foreign insurance agent on its behalf, and that Grand may not be legally obligated to honour the contracts. It is understood that at least 1,000 policy holders are involved.
Mr Banicevic, and AMCO Insurance Management Group Pty Ltd, AMCO Group Pty Ltd, ACC AMCO Consortium Company Pty Ltd and United Investment Funds Pty Ltd: must not accept any new proposal or issue any new policy of insurance as foreign insurance agent on behalf of Grand; must deliver to the Court any seals used in the issuing of policies of insurance as foreign insurance agent for Grand; and must not hold out that they have any authority to enter into, execute, or otherwise accept any proposal for, or issue any contract of, insurance as foreign insurance agent for Grand.
Mr Banicevic has also been ordered to hand in his passports until the orders expire on June 4.
Michael Scales, from Ernst & Young, has been appointed as interim receiver to certain bank accounts of AMCO Consortium Company Pty Ltd, United Investment Funds Pty Ltd and AMCO Group Pty Ltd.
Advice on alternate insurance options is available from 1300 780 808.
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