ASIC Fines CommBank's CommSec

Submitted by Share Trading on 25 September, 2012 - 08:49

CommBank (ASX:CBA) owned broker, CommSec was fined $50,000 as reported by the ASIC.

  • The Markets Disciplinary Panel (MDP) fined CommSec with a $50,00 penalty for a series of misleading trades executed in late 2010 to early 2011.
  • The fine was paid to Australian Securities & Investments Commission (ASIC).
  • The infringement notice was related to " the execution of 48 Crossings that involved no change in beneficial ownership in the fully paid, ordinary shares of Oaks Hotels & Resorts Limited (OAK), that allegedly interfered with the efficiency and integrity of the ASX Market."
  • " Between 4 August 2010 and 20 January 2011, CommSec, on account of its client, executed 48 Crossings in the fully paid ordinary shares of OAK (ACN 113 972 366). During the Relevant Period, the client placed 96 Orders in OAK, 48 on an account in the name of the client and 48 on an account in the name of the client & the client’s wife (the 48 Crossings)."
  • " The 48 Crossings involved no change in beneficial ownership (NCBO) and falsely represented 11.88% on bona fide volume in OAK, creating the misleading appearance of active trading. This is inconsistent with the efficiency and integrity of the market as participants are likely to assume that the transactions reflect genuine supply and demand and act accordingly."
  • "The Markets Disciplinary Panel (MDP) is a peer review body that exercises ASIC’s power to issue infringement notices and accept enforceable undertakings in relation to alleged breaches of the market integrity rules. The market integrity rules are made by ASIC and apply to market operators, market participants and prescribed entities under the regulations."

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