FC Stone fined $130,000 for Risk management failings


AGM markets, ASIC, regulator news, License suspension

28 April, AtoZForex.com, Lagos — The Australian Securities and exchange commission has penalized FC Stone Australia Pty Ltd for failings in regulatory requirements. FC Stone Australia Pty Ltd is a subsidiary of INTL Fcstone Inc (NASDAQ:INTL), a firm which offers services in the FX market, Securities, equities and the advisory services amongst other things.

A levy of $130,000 will have to be paid by FC Stone for a host of failings, including failure to adequately respond to infringement notice given to it by the Markets Disciplinary Panel (“MDP”). According to the ASIC report: “The MDP  had reasonable grounds to believe that FC Stone had contravened subsection 798H(1) of the Corporations Acton several occasions by failing to comply with certain ASIC (ASX24) market integrity rules.”

Basically, FC stone failed to adhere to required standards of prudent risk management procedures. Appropriate documentation of maximum price change limits where not done neither where daily reconcilations performed.

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In addition, the firm failed in other areas such as notify ASIC that a daily reconciliation had not been performed in accordance with the respective market integrity rule, by the required time and provide to ASIC an accurate ad hoc NTA return, on two separate occasions.

The discoveries of the firm's violations were made when an onsite review of FC Stone was carried out in 2012 by the ASIC Market & Participant Supervision team, leading to FC STone fined $130,000. The company has appropriately adhered to the ASIC’s judgement.

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