ASIC agrees to dealer probe

Tuesday, 13 March, 2001 - 21:00
THE Australian Securities and Investments Commission Ltd has accepted an enforceable undertaking by licensed securities dealer D&D Tolhurst.

ASIC became concerned about Tolhurst’s internal compliance procedures, particularly its obligations in relation to licence conditions and the Corporations Law, following an investigation into the actions of two former Tolhurst proper authority holders.

Tolhurst brought the trading activity of the two proper authority holders to the attention of ASIC.

As part of the enforceable under-taking, Tolhurst has agreed to engage an external independent compliance consultant approved by ASIC, to review and assess compliance within the company.

ASIC’s director enforcement in WA Stephen Howell said that Tolhurst had been working with ASIC and had started implementing processes in accordance with the enforceable undertaking.

“ASIC expects all securities dealers to ensure they have compliance systems and procedures in place to enable them to meet their responsibilities under the law and their licences,” he said.

This is the fourth enforcement undertaking accepted from stockbrokers in Perth during the past 12 months.