21/11/2018 - 15:21

State One to pay $500,000 for market breach

21/11/2018 - 15:21

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A Perth stockbroking firm has been forced to pay $500,000 after it failed to comply with the corporate watchdog’s market integrity rules.

State One to pay $500,000 for market breach
Asic launched proceedings against State One two years ago.

A Perth stockbroking firm has been forced to pay $500,000 after it failed to comply with the corporate watchdog’s market integrity rules.

The Federal Court has ordered State One Stockbroking to pay penalties of $350,000, while the company has also agreed to pay $150,000 to the Australian Securities and Investment Commission for its legal and investigative costs.

The court found that, in March 2011, State One placed 19 bids on behalf of a client, in circumstances where it should have suspected that the client had the intention of misleading the market in relation to an undisclosed stock.

The firm also failed to maintain the necessary organisational and technical resources with respect to post-trade alert systems to ensure that it complied with the market integrity rules.

State One admitted to the contraventions in a statement of agreed facts.

‘The Market Integrity Rules are vital to ensuring that Australia’s financial markets are fair and efficient,” Asic commissioner Cathie Armour said.

“Market participants are reminded of the importance of their role as gatekeepers to our markets. If they fail to meet their obligations, Asic will take action.”

State One began operating in 1993 and has more than 40 staff across offices in Perth and Sydney.

Asic launched proceedings against State One two years ago, after the firm failed to comply with an infringement notice the corporate watchdog had issued.

The hearing of the proceedings commenced on September 17 2018.

At the parties’ request, the hearing was adjourned on September 18 2018, following an agreement to resolve the proceedings.

In 2017, Asic consolidated the market integrity rules to create a common set of rules for securities markets and a common set of rules for futures markets.

 

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