SFA expels five members for rule breaches

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The Independent Online
THE SECURITIES and Futures Authority, the stockbrokers' regulator, yesterday expelled five members and suspended one for separate breaches of its rules.

Andrew Gibson, a trader formerly employed by Refco Overseas Ltd, entered into a series of artificial transactions in early 1997 to boost his desk's six-month profit figures, thereby inflating the bonus pool in which he had a 40 per cent stake.

Mr Gibson, who has been dismissed by Refco, was expelled from the SFA, barring him from working as a trader. He was ordered to pay the SFA's costs of pounds 4,400.

Andrew Peter Evenden, a former trader at Bank Boston NA, was expelled for concealing losses on his book by mismarking positions between October 1996 and September 1997. He must pay SFA costs of pounds 5,000.

Frank Ntim, a deputy manager at Ghana Commercial Bank, was expelled and fined pounds 5,200 for failing to co-operate with SFA demands for details of his bank accounts. Mr Ntim had misappropriated pounds 5,202.46 from a dormant account holding interest monies belonging to his employer. He must pay SFA costs of pounds 2,000.

Philip Penner, a derivatives trader at CSFB (Europe), was suspended for building up a short futures position significantly in excess of his trading limits without authority.

Christopher Michael Sanders, a former employee of Falcon Securities UK, carried out unauthorised personal account dealings and rebooked profitable transactions from client accounts to one maintained for his own benefit.

The SFA expelled him and ordered him to pay pounds 5,000 to its costs.

The individual fines came on the same day that Albert E Sharp, the private client stockbroker, was fined pounds 200,000 by the SFA and severely reprimanded.

The fine related to widespread failures in reconciling dividends and stock in the year to August 1997.

Clients failed to receive payments correctly and on time and Albert E Sharp paid compensation for loss of interest. The company must pay pounds 12,500 costs.