To: Associate Members

Full Members

Local Members

No: 35/00

 

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 was granted a partial reporting exemption from the requirements of Article 3.6(3)(b)(i) whereby it is only required to lodge a Directors’ Statement, a Statement of Clients’ Funds and a copy of the RBA’s Form D.

On 21 December 1999, the Member submitted the Director’s Statement and the Statement of Clients’ Funds as at 30 November 1999, but did not include a copy of the RBA’s Form D. Compliance staff subsequently contacted the Member requesting it lodge the outstanding documentation. A copy of the Form D was received by the Exchange on 6 January 2000, which was after the due date for lodgement.

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 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 November Monthly Return on 4 January 2000, 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 3

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 November Monthly Return on 5 January 2000, 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 4

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

Article 4.6(4)(c)(i)

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

On 6 January 2000, the Member requested an extension of time to lodge the November Monthly Return by no later than 7 January 2000. This request was made after the due date for lodgement.

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 5

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

Article 4.6(4)(c)(i)

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

The Member lodged the November Monthly Return on 4 January, 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 and the Member has twice been in breach of Article 4.6(4)(c)(i). On this basis, in accordance with Article 38.9.1(b), the Committee imposed a fine of $250 upon the Member.

MEMBER 6

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

Article 3.6(3)(r)

[Failure to ensure employee is registered with the Exchange as a Registered Representative]

Compliance staff queried correspondence dated 30 November 1999 from the Member concerning the Registered Representative status of one of its employees. From a review of the matter it was identified that the Registered Representative status of the employee had not been transferred when he commenced employment with the Member in 1997.

In accordance with Article 38.9.1(d), the Committee imposed a fine of $1000 on the Member in respect of the identified breach.

MEMBER 7

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

Article 3.6(1)(b)

[Failure to co-operate with the Business Conduct Committee]

Compliance staff undertook a review of Risk Management Limits set by Full Members. The Member had not provided a final list of limits to the Exchange despite being requested to on two separate occasions.

MEMBER 8

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

Article 4.6(4)(c)(i)

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

On 30 December 1999, the Member requested an extension of time to lodge the November Monthly Return by no later than 6 January 2000. The Return was lodged with the Exchange on 7 January 2000 which was after the extended due date.

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.

Michelle Wagner

Manager; Compliance

18/02/2000