ASIC bans former Regal dealer for market manipulation

The Australian Securities and Investments Commission (ASIC) announces that it has banned Dylan Christopher Rands from providing financial services for five years after finding he engaged in market manipulation.

Mr Rands was a former dealer and portfolio manager at Regal Funds Management Pty Ltd, which operates managed investment schemes, known as funds. As part of his portfolio-manager role, Mr Rands managed trading in Clearview Wealth Limited shares, which were held in several Regal funds.

ASIC found Mr Rands engaged in manipulative trading in relation to Clearview Wealth shares and breached the Corporations Act when:

• between December 2018 and June 2019, he entered into 112 uncommercial transactions which created, or were likely to create, an artificial price for the shares of Clearview Wealth;
• on 27 March 2018 and 31 May 2019, he created a false or misleading appearance of active trading in Clearview Wealth.

Mr Rands’ pattern of trading involved purchasing Clearview Wealth shares which had the effect of increasing or restoring the Clearview Wealth share price shortly following a price fall. Such trading displayed an absence of commerciality, in circumstances where Mr Rands’ objective was to exit the Clearview Wealth position he managed at Regal, which he ultimately sold in June 2019.

ASIC also found Mr Rands is not adequately trained, or is not competent, to provide financial services and perform functions as an officer of an entity that carries on a financial services business; and is likely to contravene a financial services law.

The regulator notes that Mr Rands has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.