The Markets Disciplinary Panel is the forum for disciplinary action against participant and market operators for alleged breaches of the market integrity rules. It is a peer review body, consisting of part-time members with relevant market or professional experience. The current members of the panel have, or have had, senior roles in broking firms and investment banks.
The panel has been established by ASIC to make decisions about whether to issue infringement notices or accept enforceable undertakings for alleged breaches of the market integrity rules. ASIC will decide which matters are referred to the panel.
What the panel does
For each matter, a three member sitting panel will be formed on the advice of the chairman of the panel. The person who is alleged to have breached the market integrity rules will be:
provided with a written statement that sets out ASIC’s reasons for believing that a breach has occurred
given the opportunity to appear at a private hearing before the sitting panel
The sitting panel will decide whether it has reasonable grounds to believe that the person has breached the market integrity rules and if so, whether to issue an infringement notice or accept an enforceable undertaking.
An infringement notice may require a person to do one or more of the following:
pay a penalty (up to 60% of the maximum penalty that may be imposed by a court for a breach of the relevant rule)
accept other sanctions (including public censure or disgorgement of profits)
enter into an enforceable undertaking.
Compliance with an infringement notice is not enforceable. If a person elects to comply:
no civil, criminal or administrative action may be taken against the person in relation to the relevant conduct
the person is not taken to have admitted liability or to have breached the relevant rules.
If a person does not comply with an infringement notice, ASIC may take civil (or civil penalty) proceedings for the alleged breach of the market integrity rules in the courts. The relevant conduct may also be a basis for civil proceedings or administrative action (for example, the imposition of a condition on an Australian financial services licence).
The panel will also make decisions on proposed jointly agreed settlements for alleged breaches of the market integrity rules. It is open to those who are alleged to have breached those rules or who report their own possible breaches to ASIC, to seek to negotiate a settlement. Proposed settlements by way of entry into an enforceable undertaking or the issue of an infringement notice (which may include entry into such an undertaking) in negotiated terms, will be referred to a sitting panel for approval. The sitting panel will decide whether to accept the undertaking or issue the notice.
Panel members are appointed by ASIC. The current members are as follows:
Ms Lisa Gay, Chairman of Flora & Fauna International Australia Pty Ltd. Former General Counsel of Goldman Sachs JB Were, over 20 years in the industry with legal and compliance expertise, a former member of the ASIC Markets Supervision Advisory Panel and ASX Disciplinary Tribunal. Ms Gay is the Chair of the MDP;
Ms Cilla Boreham, Senior Legal Counsel & Head of Legal, Risk Compliance, JBWere Pty Ltd, having over 14 years experience in the industry, with a background in financial services licensing and regulation, stockbroking, compliance and risk management;
Mr Richard Brasher, Dealer, Northcape Capital. Former Associate Director at RBS Equities Australia, over 27 years experience in the industry, specialising in equity derivative strategies;
Mr Ian Chambers, Head of Australian Equities, Morgan Stanley Australia, 30 years in the industry with a strong background in equities and derivatives;
Mr Leigh Conder, General Manager, Corporate Banking Solutions, formerly General Manager, Financial Markets Operations and Equities & Margin Lending Operations, Commonwealth Bank, 25 years experience with a strong background in operations;
Mr Peter Curry, Joint Managing Director, MAP Capital Advisors Pty Ltd, with 34 years extensive experience in the accounting and investment banking industries specialising in equities and global equity syndication;
Mr Simon Gray, Deputy CEO, Shaw Stockbroking, 14 years experience with a background in legal and compliance, supervision and corporate finance;
Mr Adrian Holst, Advisor, Baillieu Holst Ltd. Former Managing Director, F W Holst & Co Pty Ltd, with 50 years experience in the accounting and stockbroking industries, including serving as an executive on numerous associated professional and industry bodies, including being a current member of the ASX Disciplinary Tribunal and a past alternative director of the Finance Industry Complaints Services Limited;
Mr Geoffrey Louw, Head of Futures and Forex, Bell Potter Securities, 18 years in the industry with particular expertise in the futures market;
Mr Michael Manford Executive Chairman and Chief Executive Officer, Patersons Securities, Executive Chairman and CEO of a full service stockbroking firm with 32 years in the industry;
Mr Russell McKimm Client Adviser, Patersons Securities, 34 years in the industry, managing broker-client relationships and providing financial advice;
Ms Sadie Powers, Head DTR - Equities, Patersons Securities, having over 17 years experience in the industry, with an extensive background in equities trading and regulatory compliance;
Mr Pete Robson, Director, Head of Trading, Investment Technology Group, Inc., with over 30 years experience in the industry predominately in equity and derivatives trading, including as a past governor of the ASX Dispute Governors' Committee and testing Governor for the ASX from 1991 to 2007;
Mr John Steinthal, Consultant Financial Advisor. Former Managing Director, Head of Australia Equities, Moelis & Company, Australia, with 20 years experience in the industry, with an extensive background in equities and derivative trading, risk and compliance
Ms Victoria Weekes, Risk Consultant & Company Director, Risk Compliance Solutions Pty Ltd, having over 20 years extensive financial services and regulatory experience as a senior executive, including specialising in banking, retail and wholesale broking and financial markets trading, and consulting and advising on regulatory compliance and risk.
Mr Glenn Rosewall, Executive Chairman, BBY Limitedfor over 10 years, with 33 years’ experience (including 8 years in New York) as a Chartered Accountant and Master Stockbroker. Background in Institutional, Retail; Research; Corporate Finance; and Asset Management in Australia, Asia, and the USA. His term as an MDP Member is from 1 August 2012 to 31 July 2014.
Mr Mark Pugsley, Chief Financial Officer and Company Secretary, Resource Development Group Ltd; Board Member Wanslea Financial Services (inc.); Director RBS Morgans Foundation Ltd (part time), former Finance and Compliance Director, RBS Morgans Limited Group, with extensive experience of more than 29 years in the stockbroking and financial services industry, specialising in Finance, Corporate Governance, Compliance and Regulation. An Associate of the Australian institute of Chartered Accountants, and Graduate of the Australian Institute of Company Directors. He has been appointed an MDP Member from 1 August, 2012 to 31 July 2014.
Ms Anne Brown, Non-Executive Director of the Clean Energy Regulator. Former Group Executive & Chief Risk Officer of the Australian Securities Exchange Ltd, having 20 years experience in Australian and international exchange-traded financial markets and related infrastructure with a background in risk management; Compliance; Audit & Governance and related regulatory and industry associations. Her term as an MDP Member is from 1 October 2012 to 30 September 2014.
Mr Andrew Tanner, Managing Director of Australian Equities at Goldman Sachs Australia, having over 18 years experience in the industry including 5 years in New York, specialising in equity sales and trading. His term as an MDP Member is from January 2013 to 31 December 2014.
Mr Ian Nissen, Director, Head of Futures and OTC Clearing, Prime Finance Sales, Australia, Citigroup Pty Ltd, with over 20 years experience in the industry, specialising in the futures and OTC markets with a strong background in comprehensive business strategies and managing broker-client relationships. His term as an MDP Member is from 1 March 2013 until 28 February 2015.
Counsel to the panel
The panel is assisted in its carrying out its functions by lawyers appointed by ASIC. These lawyers are operationally separated from the ASIC teams that are responsible for investigating possible breaches of the market integrity rules and presenting matters to sitting panels for determination.
More information about the operation of the panel is set out in Regulatory Guide 216 Markets Disciplinary Panel (RG 216) and Regulatory Guide 225 Markets Disciplinary Panel practices and procedures (RG 225)