ASIC bans former wealth manager for market manipulation

Mr Rands was a former dealer and portfolio manager at Regal Funds Management. Regal operates managed investment schemes, known as funds. As part of his portfolio-manager role, Mr Rands managed trading in Clearview Wealth Limited shares, which were held in several Regal funds.

ASIC found that Mr Rands was engaged in manipulative trading in relation to Clearview Wealth shares and breached the Corporations Act when between December 2018 and June 2019, he entered into 112 uncommercial transactions which created, or were likely to create, an artificial price for the shares of Clearview Wealth.

On 27 March 2018 and 31 May 2019, he also created a false or misleading appearance of active trading in Clearview Wealth.

“Mr Rands’ pattern of trading involved purchasing Clearview Wealth shares which had the effect of increasing or restoring the Clearview Wealth share price shortly following a price fall,” ASIC stated.

“Such trading displayed an absence of commerciality, in circumstances where Mr Rands’ objective was to exit the Clearview Wealth position he managed at Regal, which he ultimately sold in June 2019.”

ASIC also found Mr Rands is not adequately trained, or is not competent, to provide financial services and perform functions as an officer of an entity that carries on a financial services business; and is likely to contravene a financial services law.

“Market manipulation is an enduring priority for ASIC. Market manipulation undermines the integrity of, and diminishes consumer confidence in, Australia’s financial markets,” ASIC stated.

Mr Rands has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.