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ASIC, General discussion about our market watchdog
blacksheep
post Posted: Dec 5 2019, 11:03 AM
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Most of us know this - what we want to know is why they are allowed to slip through sadsmiley02.gif

ASIC reckons penny stock mining floats are riddled with conflicts
Vesna Poljak
QUOTE
The Australian Securities and Investments Commission concluded that mining and explorarion floats at the microcap end of the market are riddled with conflicts than can lead to poor investor outcomes.

Some of its key findings:

Retail investors who don't broke through a lead manager get limited access to IPOs.

"The prevalence of conflicts of interest is a significant concern".

Lead managers may act for both the company and investor clients, hold shares or even board seats.

Presentations and marketing methods "are often subject to substandard compliance controls".

IPO structures are too short-term focused, at odds with investment horizons more appropriate for following through on exploration.




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Sep 30 2019, 04:01 PM
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Who would have thought rolleyes.gif
Insider trading alive and kicking on the ASX, according to Australian National University study
By Imelda Cotton - September 24, 2019
extract
QUOTE
Directors and associates of some of Australia’s public companies are regular users of insider trading tactics, according to a new study by the Australian National University which reviewed a decade of trades on the ASX since 2005.

Finance professor and lead researcher Dean Katselas found “contrary trades” were being made with non-public knowledge about the future performance of a firm, giving rise to the notion that insider trading is alive and kicking within the nation’s corporate sector.

In his paper, Dr Katselas addresses the idea that insiders, endowed with superior information about their firm, are “contrarian” and reflect disagreement with the market’s current perception of the firm’s value.

He says they use this knowledge by trading in advance of future performance indicators not known to the market.

“I find that insiders – directors in particular – are contrarian traders; they buy when their firm is in the bottom tercile according to prior returns (losers), and sell if their firm is a prior winner,” he said.

“This most certainly amounts to insider trading under the law [and] is exacerbated if the firm is a value or glamour stock.”

Dr Katselas said trading during the period of review was contrary to the sentiment of the news – good news meant the directors sold their shares and if it was bad news, they bought.

“It was the exact opposite of what you would expect to see after either kind of news,” he said.

“If the news had the potential to boost the share price, I found the directors were selling their shares when normally, this is the time you would expect them to be buying.”

He said when he looked at the profits made by these seemingly inverse trades, the companies with the “more dire sounding future” showed the greatest profitability.

read more - https://smallcaps.com.au/insider-trading-as...sity-anu-study/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 9 2019, 11:12 AM
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In Reply To: blacksheep's post @ Dec 10 2018, 07:53 PM

Ben Pauley's petition - https://www.change.org/p/australian-public-...oyal-commission?

Stop dishonest practices on the Australian Stock Exchange and demand a Royal Commission.

QUOTE
Currently, amongst many other dishonest or dubious practices, ASIC allows

Short selling, including during capital raises

Exclusive after-hours trading for select parties

Algorithmic trading that manipulates prices

Collusive trading and coordinated shorting by Investment Banks

Privately owned servers located preferentially inside the ASX

Liquidators under-selling company assets, price gouging, and aiding their demise for the benefit of other parties

Coordinated pump and dump operations using well known investor forums

Manipulated private equity buyouts of iconic companies, looting them and then relisting the gutted shells with inflated valuations

Rampant and blatant insider trading that never leads to prosecution or conviction.

Every experienced investor knows about these dishonest and disgraceful practices that have seen the ASX openly described as a ‘Cowboy Bourse’ and the ‘Wild West’, yet ASIC continues to turn a blind eye to it. Whether through under-funding or corruption, ordinary investors are not being represented by the body charged explicitly with that duty. Only a Royal Commission will have the power and gravitas to bring about the root and stem changes required to give ordinary investors a level playing field and stop the ripping off of billions of dollars by white collar criminals.




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 1 2019, 10:14 AM
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Wednesday 31 July 2019
19-197MR Review upholds Australian equity market’s record for cleanliness
QUOTE
A recent review by ASIC found Australian equity markets continue to operate with a high degree of integrity.

Report 623 Review of Australian equity market cleanliness: 1 November 2015 to 31 October 2018 examines market cleanliness for the period, with a focus on insider trading and information leaks ahead of material market announcements. It extends our work in Report 487 Review of Australian equity market cleanliness, which found an overall improvement in market cleanliness over the 10 years to 31 October 2015.

In a clean market, prices react immediately after new information is released through the proper channels. Abnormal price movements and unusual trading patterns ahead of material announcements may indicate an 'unclean market'.

The overall cleanliness of the market fluctuated between 2015 and 2018—despite a deterioration in 2016, market cleanliness improved in 2017 and 2018 to settle around 2015 levels. During the period we found that:

on average, 0.6% of accounts that traded before material price-sensitive announcements were deemed suspicious
suspicious accounts profitably traded on average 5.1% of the volume before each announcement
while the percentage of suspicious trading accounts remained stable, the volume traded by these accounts increased
there was more suspicious trading before merger and acquisition announcements than other announcements
there was more suspicious trading and abnormal price movements before unscheduled announcements than scheduled announcements
announcements by smaller companies were more likely to be unclean. Many of these smaller companies were in the materials sector
.

https://asic.gov.au/about-asic/news-centre/...or-cleanliness/

No surprise "smaller companies were more likely to be unclean" and they were " in the materials sector"



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Jan 23 2019, 10:35 AM
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Posts: 6,791
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Watchdogs wined, dined and given corporate gifts without scrutiny
By Royce Millar & Chris Vedelago
22 January 2019 — 11:48pm

QUOTE
Australia’s corporate and consumer watchdogs are allowing commissioners and staff to accept gifts and hospitality from the industries they regulate but refuse to publicly disclose the largesse or potential conflicts of interest.

Presents in recent years include champagne and vintage wines, expensive dinners, concert tickets, airline upgrades and customised “training seminars” supplied by stockbrokers, banks, law firms and industry lobby groups.

In 2017, investment bank Macquarie Group wined and dined Australian Securities and Investments Commission staff at Sydney's Beta Bar at the same time the bank was the subject of multiple ASIC investigations and had been ordered to pay former clients tens of millions of dollars in compensation.

And in 2016, Australian Competition and Consumer Commission staff justified being guests of Energy Australia for dinner at a Melbourne restaurant because the ACCC was not “actively considering a significant energy matter”. Less than a year later, then treasurer Scott Morrison commissioned the ACCC to run an inquiry into pricing and competition in the retail electricity industry.

The gifts of dinners revealed here were exposed only due to freedom of information requests and media pressure.

The federal regulators – ASIC, ACCC as well as the banking regulator and the tax office – keep gift and hospitality records but do not routinely publish them.


read more - https://www.theage.com.au/national/watchdog...122-p50sy8.html

These "gifts" should be made public automatically



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 20 2018, 12:47 PM
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Posts: 6,791
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Thursday 20 December 2018
18-389MR ASIC reviews allocations practices in equity raising transactions
QUOTE
ASIC's review of allocations in equity raising transactions underscores the potential impact of conflicts of interests in allocation decisions. ASIC highlights areas of improvement for both financial services licensees (licensees) and issuers when raising equity on our listed markets.

ASIC Commissioner Cathie Armour said, 'The fair and efficient allocation of securities in equity raising transactions promotes market integrity, improves market efficiency and increases investor confidence.

'Issuers should be engaged with their capital raising transactions with particular focus on raising funds on the best terms possible. The licensees appointed to manage these transactions for the issuer must appropriately manage conflicts of interest and confidential information about transactions. Otherwise, there is a risk that a breach of financial services laws may occur. This may include misleading and deceptive conduct, breaches by licensees of their general conduct obligations, insider trading and market manipulation', Ms Armour said.

ASIC's review of a range of large and mid-sized Australian-based licensees found a range of discretionary factors are taken into account in an allocation recommendation, including the objectives of the transaction, investor types and the investor bidding into the bookbuild. The issuer’s objectives should be the primary driver of allocation recommendations.

ASIC makes recommendations on improvements to licensee practices in the conduct of allocations. These include:

improving the documentation, accuracy, timing and delivery of messages (including updates) to investors during equity raising transactions to ensure they are not misleading and deceptive. This includes reviewing whether information previously provided, particularly about the level of demand for a capital raising, is correct
engaging with issuers at various stages during a transaction (issuers are also encouraged to take an active interest in the allocation process)
reviewing the adequacy of their allocation policies and procedures, compliance arrangements and record keeping for allocations;
avoiding allocations to connected persons as they can present a significant conflict of interest, and
identifying and managing potential conflicts of interest when making allocation recommendations, for example, disclosing the conflict to the issuer with an explanation of how it is being managed.
Ms Armour said, 'All licensees should review this report and consider whether their controls for the allocation process in equity raising transactions– including policies, procedures and monitoring – are appropriate and sufficiently robust to meet legal and regulatory requirements.’

ASIC will continue to monitor selected transactions to test that allocation decisions are being made consistently with financial services laws.


Download the draft summary report (PDF 330KB)

Read the full report
https://asic.gov.au/regulatory-resources/fi...ummary-version/



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 

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Share Cafe Sentifi Top themes and market attention on:


blacksheep
post Posted: Dec 10 2018, 07:53 PM
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A Three part opinion piece by Benjamin John Pauley - The unspoken crimes of the ASX

https://independentaustralia.net/life/life-...y/banking,11882

https://independentaustralia.net/life/life-...---part-2,11955

https://independentaustralia.net/business/b...x--part-3,12185





--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Dec 5 2018, 03:17 PM
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Not ASIC - but SEC. Maybe ASIC can take a leaf out of their book

Two Celebrities Charged With Unlawfully Touting Coin Offerings

"Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements," said Enforcement Division Co-Director Steven Peikin.

"Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds."

https://www.sec.gov/news/press-release/2018-268



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
early birds
post Posted: Nov 24 2018, 07:15 AM
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In Reply To: blacksheep's post @ Nov 23 2018, 11:40 AM

lmaosmiley.gif
not surprised as ASIC always a paper tiger ...........

 
blacksheep
post Posted: Nov 23 2018, 11:40 AM
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Posts: 6,791
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Banking royal commission: ASIC boss James Shipton questioned about regulatory failures
By business reporter Stephanie Chalmers
QUOTE
The banking royal commission is wrapping up its Sydney hearings with a further grilling of ASIC chairman James Shipton.

The head of the corporate regulator is facing scrutiny for negotiating penalties and community benefit payments with the banks.

https://www.abc.net.au/news/2018-11-23/bank...ection=business



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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