To: Associate Members

Full Members

Local Members

No: 13/00

 

Disciplinary Action imposed by the Business Conduct Committee

Members are advised, pursuant to Article 38.13, of Disciplinary Action taken by the Business Conduct Committee (the BCC):

MEMBER 1

It was identified that a Full Member had failed to comply with:

Article 3.6(3)(b)(i)

[Full Members to lodge financial returns within one calendar month of the last trading date of each preceding month]

The Member lodged the October Monthly Return on 1 December 1999, which was after the due date for lodgement. The Member did not request an extension of time to lodge the Return.

The Committee noted that this incident was a repeat offence. On this basis, in accordance with Article 38.9.1(d), the BCC imposed a Reprimand upon the Member for the identified breach.

MEMBER 2

It was identified that an Associate Member had failed to comply with:

Article 4.6(4)(b)(ii)

[Introducing Broker Associate Member to maintain minimum level of Net Tangible Assets of $50,000].

As previously advised in Circular No. 319/99, an Introducing Broker Associate Member’s NTA decreased below the minimum required level of $50,000. At the time, the Member was unable to increase its NTA to the required amount or provide advice as to how it would rectify the deficiency. Accordingly, the Membership of the Introducing Broker Associate Member was suspended.

In accordance with Article 38.9.1(d), the BCC imposed a Reprimand upon the Member for the identified breach. In determining the level of penalty, the Committee took into consideration the fact that the Membership remains suspended.

 

 

Deborah Horne

GM; Compliance & Surveillance

14/01/2000