As a regulator, the
As part of that role, a recent ASIC investigation has led to the managing director of
ASIC's allegations include that the managing director used the names of his family members 24 times to manipulate Eneco's share price.
Each contravention of market manipulation carries a maximum penalty of 15 years imprisonment.
Market manipulation - what is it?
Section 1041A of the Corporations Act 2001 (Cth) details the offence of "market manipulation". It provides that a person must not take part in (directly or indirectly) a transaction that has, or is likely to have, the effect of creating an artificial price for trading in financial products on a financial market operated in this jurisdiction or maintaining at a level that is artificial a price for trading in financial products on a financial market operated in this jurisdiction.
The criminal prosecution, conducted by the Commonwealth Director of Public Prosecutions on behalf of ASIC, follows the sentencing of another individual earlier this year, the online personality known as 'Fibonarchery' (
This prosecution formed part of ASIC's crackdown on market manipulators, particularly in the social media sphere, known as "finfluencers" (social medical influencers who purport to provide financial advice, particularly investment advice). ASIC issued a statement last year advising that it "monitors select online financial discussion by influencers who feature or promote financial products for any misleading or deceptive representations or unlicensed financial services." The statement said, "If you carry on a business of providing financial services, you must hold an AFS (Australian financial services) licence" unless certain exemptions or authorisations apply.
This is an evolving space and one to watch.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
Mr
Holding Redlich
Level 8
3000
Tel: 39321 9999
Fax: 39321 9900
E-mail: inquiries@holdingredlich.com.au
URL: www.holdingredlich.com.au
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