Asc Bans 11 From Industry
The Age
Wednesday July 12, 1995
The Australian Securities Commission banned 11 securities dealers and investment advisers from the industry last financial year as part of its licensee surveillance program.
Remedial action was taken against another 77 authorised industry representatives in the program that the ASC claimed had substantially contributed to improved practices and raised the level of compliance with the Corporations Law.
The ASC scrutinised the operations of 173 securities dealers and investment advisers and 297 authorised representatives.
Two licences were revoked, 15 dealers surrendered their licences after ASC visits and eight had their licence conditions amended.
In a statement released yesterday the ASC said it had helped investors claiming millions of dollars in compensation for defective advice.
Mr Richard Cockburn, the executive director of corporate regulation at the ASC's Victorian division, said the surveillance program had significantly enhanced honesty and fairness in the investment advice industry and contributed to investor protection.
Mr Cockburn said this year's program would place a greater emphasis on analysis of data such as complaints and audit reports and would closely examine internal control systems.
Some of the security advisers who were banned had traded in options on behalf of clients without permission, others were found to have obtained money by deception or marketed illegal fund-raising schemes.
One scheme involved raising money to recover sunken treasure.
In some cases, the offenders have been dealt with by the courts and sentenced to jail, such as the unlicensed futures dealer Peter Francis Peck who was sentenced to three-and-a-half-years' jail in May.
© 1995 The Age