ASIC, the Australian Securities and Investments Commission, has banned an adviser from providing any financial services for six years.
The ruling came yesterday following an investigation by ASIC, the Australian regulator, which found David Cornford guilty of buying and selling securities without clients' permission, even as he was using their personal accounts.
The regulator said Cornford had taken part in transactions that had the effect of maintaining an artificially high price for trading shares. Moreover, the operating licence of Kaz Capital did not cover the provision of the service Cornford was providing.
Cathie Armour, an ASIC commissioner, explained: "Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives. We expect all licensees to comply with this and will monitor their compliance closely."
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