The Australian Securities and Investments Commission has permanently banned a former Deutsche Bank currency trader from the industry after a series of false trades artificially boosted the bank's revenue.
Andrew Donaldson, of Sydney, was a foreign exchange options and futures trader with the bank when he carried out the false trades in 2013 and 2014.
The Australian Securities and Investments Commission (ASIC) said it found that Donaldson had breached financial services law by engaging in misleading and deceptive conduct and that his conduct was «extremely serious.»
Artificially Reported Trading Profits
The banning follows an ASIC investigation into Donaldson's conduct in 2013 and 2014 in entering a significant number of false entries into Deutsche Bank's records. By making these false entries, he temporarily offset trading losses he had suffered and artificially increased his reported trading profits.
The entries related to trades purported to have been carried out by Mr Donaldson on behalf of Deutsche Bank and resulted in a temporary overstatement of Deutsche Bank's internal Australian Management Accounting revenue result of approximately 28 million EURO. As the entries related to trades that were never executed in the market, no external parties were affected.
Integrity of Financial Markets Vital
«The integrity of our financial markets is vitally important and ASIC will take action to remove anyone in the financial services industry who engages in conduct that undermines this integrity,» said ASIC Commissioner Cathie Armour.
«This action is also a reminder to financial institutions to ensure that they have the right systems, people and processes in place to monitor trading conduct and detect and address trading discrepancies in a timely manner,» she added.
