The Australian Securities and Investments Commission today announced it has issued a ban on Mark Jennings from providing financial services and carrying on a financial services business for 10 years.
The regulator’s announcement stated that Jennings was banned because guaranteed investment returns to his investors and traded Contracts for Difference (CFDs) using client funds without a license.
ASIC further detailed that Jennings was the former director of Suncoast Trading Pty Ltd (in liquidation). The company collapsed after suffering significant losses. Jennings subsequently advertised under the name Equity Trade that he could make “50%, 100% or 200% per year GUARANTEED RETURNS*”.
According to the Commission, the website of Equity Trade also stated that ‘[o]ur investments are recession proof, we profit in both rising and falling markets’.
In its investigation, ASIC found that Suncoast Trading, Equity Trade, nor Jennings hold the necessary Australian Financial Services licence to provide financial services.
Furthermore, it was discovered that Jennings had some clients put their deposits into his personal trading account and traded CFDs without consulting them. He made false or misleading statements to his clients as the returns were not guaranteed.
Moreover, Jennings gave false or misleading information to ASIC about the number of Equity Trade’s clients and the extent of losses suffered. The regulator concluded that he is not adequately trained or competent to provide financial services and is likely to contravene a financial services law.
The ten-year ban imposed by ASIC, prevents Jennings from providing any financial service, controlling an entity that carries on such services and performing any function involved in carrying on a financial services business.
Earlier in November, ASIC imposed an eight-year ban for Mark Bringans, former responsible manager of OTC provider Sirius Financial Markets (trading as Trade360).
