Securities watchdog Australian Securities and Investments Commission (ASIC) on Wednesday banned a former client adviser with Tricom Futures Services Pty Ltd, now known as Stonebridge Futures Services Pty Ltd (Stonebridge), Mr Roy Ho of Brisbane, from providing financial services.

Ho admitted before a panel of ASIC investigators that between 1 January 2008 and 24 October 2008, he used nine clients trading accounts at Stonebridge to place buy and sell orders for shares on the Australian Securities Exchange (ASX) without permission from the authorised signatories to the accounts.

ASIC said that was in violation of section 1041G(1) of the Corporations Act. The watchdog found that in one instance, Mr Ho continued to trade on accounts operated by one Stonebridge client despite being asked by the client to stop, and agreeing not to trade any further.

ASIC also found that Mr Ho further breached the Corporations Act when several entries he made in the order system mislead Stonebridge and when he falsified order entries in Stonebridge's order system indicating he had received instructions from clients regarding the trading when he had not.

'The case highlights the issue of unauthorised trading in the broking industry. Some cases involving a number of clients and falsification of records are readily identifiable as serious breaches of the Corporations Act, and brokers' obligations to their clients,' ASIC Commissioner Belinda Gibson said.

'However, the law is broken even in situations where a broker is making trading decisions where there is a belief that the unauthorised trading is in the best interests of their client. Both are unacceptable. ASIC intends to focus on this issue more when it assumes responsibility for market supervision later this year,' Commissioner Gibson said.

ASIC's investigation into Mr Ho follows a referral from the Australian Securities Exchange (ASX).

Mr Ho has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC's decision.