Forsyth Barr fined for failing to follow client's orders
The stockbroking firm has been fined $5000 for breaching NZX rules.
Forsyth Barr will pay a $5000 fine for a breach of NZX rules after it failed to follow an instruction from a client.
NZX Market Supervision (NZXMS) has settled with Forsyth Barr over the breach of NZX Participant Rule 11.3.1 (b).
The client provided Forsyth Barr with a written instruction to convert their entire portfolio into cash “as soon as possible.”
However, a security, which formed part of the client's portfolio, was not put on market.
The Forsyth Barr advisor, operating under an assumed discretion under Rule 11.3.2, determined that it was not in the client's best interests to sell the security at that time.
Forsyth Barr has admitted this breach, while NZXMS acknowledges that Forsyth Barr believed that it was acting in the best interests of the client.
As well as the fine, Forsyth Barr will pay costs for both NZXMS and the NZ Markets Disciplinary Tribunal and will make an offer to make good the client’s loss.
NBR staff
Thu, 24 Mar 2011
Thu, 24 Mar 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Forsyth Barr fined for failing to follow client's orders
13347