AAT stays the ASIC banning of former financial adviser for misconduct in warrants market pending review


On 8 September 2016, ASIC has banned Michael Spencer, formerly a financial adviser, from providing financial services for three years.

ASIC has found that Mr Spencer engaged in manipulation of the price of three types of MINI warrants issued by Credit Suisse, commonly called “MINIs”.

MINIs are a type of derivative product traded on the ASX.

ASIC has found that on four separate days in May 2013, Mr Spencer took part in back-to-back buy and sell trades in MINIs on ASX with a former employee of Credit Suisse after the pair had pre-arranged the MINI series, the price, the volume and the approximate timing of the trades. On each occasion, the MINI series chosen, the volume and the prices at which the trades were conducted did not reflect the earlier trading by Credit Suisse in the underlying on behalf of Mr Spencer.

ASIC has found that the prices at which Mr Spencer and the former employee of Credit Suisse arranged to trade MINIs were designed to transfer the agreed profits from all the preceding trading. This was likely to have the effect of creating an artificial price for trading in the affected MINIs on ASX.

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AAT stays the ASIC banning of former financial adviser for misconduct in warrants market pending review

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