On 22May 2023, AST ASIC said it banned former fund manager for 3 years.
- AST ASIC said it has banned former Gleneagle Securities fund manager and authorized representative Gregory Tolpigin from providing financial services for three years.
- Mr. Tolpigin was banned after he was found to have engaged in naked short selling.
- Follows AST ASIC May 2018 sought feedback on proposed short selling rule.
- Found that Mr Tolpigin engaged in the naked short selling of shares on 150 occasions.
- Totalling over AUD 7mn from Jan. 19 to Aug. 27, 2021; Mr Tolpigin sold shares on the ASX through accounts held with Gleneagle Securities as well as associated entities.
- He did not own or borrow the shares at the time he placed the orders to sell them.
- Said that his sales risked settlement failure in the event that he was unable to buy the shares back prior to settlement, i.e. if the shares had been suspended from trading.
- The naked short selling also distorted accuracy of ASX's daily gross short sales report; the accuracy of this data contributes to the integrity of Australia’s financial markets.
- AST ASIC is reviewing compliance by market participants with the short selling regime.
- Prohibition on naked short selling is essential for maintenance of financial market integrity; will continue to identify fails, and take enforcement action where necessary.
- Regulatory guide 196 short selling contains further guidance on short selling, including on the naked short selling prohibition and disclosure regime for covered short sales.
- Traders as well as market participants should be aware of the short selling regime and requirements, while ensuring that adequate controls and checks are in place.