AAT affirms ASIC’s banning of former client adviser

The Administrative Appeals Tribunal (AAT) has affirmed ASIC’s decision to ban Mr Ryan Batros from providing financial services for five years.

The banning follows an ASIC investigation into Mr Batros’ conduct on 25 and 26 August 2014 in placing ‘execution only’ orders on the ASX that he had received from clients to sell shares and options in Metals of Africa Limited (MTA). At this time, he was in possession of information regarding impending capital-raising by MTA.

MTA subsequently announced the capital-raising in an announcement to the ASX on 3 September 2014.

Cathie Armour

ASIC Commissioner Cathie Armour said:

This outcome reinforces that an adviser must not execute a client order when in possession of material non-public information such as information about capital raisings – even when following a client’s direct instructions.

Mr Batros has the right of appeal to the Federal Court of Australia for a review of the AAT’s decision.

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