The Australian Securities and Investments Commission (ASIC) has permanently banned Mr Timothy Douglas Dickson, a former equities advisor of Belair, South Australia, from acting as a representative of a financial services licensee.

ASIC permanently banned Mr Dickson after finding that he did not comply with the financial services law between 1 January and 28 February 2005 when he worked as a representative of Baker Young Stockbrokers Limited (Baker Young).

ASIC’s delegate found that Mr Dickson:

• purchased shares for a client without the client’s consent and altered an email from that client to deceive Baker Young’s back office staff into transferring $6,000 from the client’s trading account without the client’s consent
• falsely advised Baker Young’s back office staff that he had paid for shares on behalf of a second client, which led to $15,000 of that client’s money being transferred to Mr Dickson, which he then used for his own benefit, and
• altered an email from a third client about the purchase of shares to again deceive Baker Young’s back office and have them transfer $15,000 between two clients’ accounts.

ASIC’s delegate formed the view that Mr Dickson had been dishonest with other people’s money and deceptive about clients’ instructions to acquire shares. ASIC believes that, if Mr Dickson was given opportunities in the future, he might again engage in dishonest conduct in the carrying on of a financial services business and deceptive conduct in connection with financial products.

‘Clients of stockbrokers should closely monitor their accounts to ensure that their advisers do not conduct unauthorised discretionary share trading on their accounts’, said ASIC’s Deputy Executive Director of Enforcement Mr Mark Steward.

‘If clients are offered a discretionary trading service by their adviser, they should protect their interests by ensuring that the adviser’s principal is aware of, and has approved, the discretionary trading’, he added.

Mr Dickson has the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.

ASIC’s investigation is continuing.