“As an active participant in Australian equity markets, Regal is subject to scrutiny from regulatory bodies from time to time. Regal’s responsibility to its clients is paramount and it takes its obligations to comply with all laws and regulations very seriously. Regal is co-operating fully with the investigation.”
Regal said the existence of this investigation does not impact Regal’s ability to provide asset management services to its clients.
Regal has learnt that ASIC is conducting a … investigation by way of a search warrant, in relation to its trading in certain securities.
Regal Funds Management
It is not the first time Regal and its chief investment officer Phil King – who was inducted into the fund managers hall of fame last month – has come under ASIC scrutiny.
In 2015, ASIC issued enforceable undertakings against institutional stockbroker Angus Aitken and his employer Bell Potter Securities, as well as Mr King and Regal over trading in Network Ten shares.
ASIC said its investigation found that on 21 May, 2013, Mr Aitken sent an email to Mr King based on the information he had obtained about his client’s possible selling intentions.
“ASIC was concerned that Mr Aitken knew, or ought reasonably to have known, that the information he provided to Mr King was, or was likely to have been, confidential client information,” it said at the time.
According to ASIC, Mr King later realised a gross profit of $80,000 from short-selling Ten shares.
“In ASIC’s view, Mr King was obliged to avoid using the information and, in particular, to refrain from selling Ten shares,” the regulator said.
The enforceable undertakings did not constitute an admission by any of the four parties.