Two former Macquarie financial advisers that were banned for 10 years for falsifying client records have had their penalties substantially reduced by the Administrative Appeals Tribunal.
Mark Alexander Landau and Marcus Roderick Campbell were banned by ASIC's Financial Services and Credit Panel for 10 years each in August 2018.
Last week the bans were slashed to 18 months by the AAT because it was determined that neither Landau nor Campbell's clients, nor Macquarie itself, were disadvantaged by the misconduct.
It was determined by ASIC that Landau and Campbell had falsified the content of client email exchanges to mislead or deceive Macquarie's compliance team into believing general advice or execution only instructions had been given, not personal advice.
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They then arranged for the same false emails to be saved into Xplan and created false order management system transaction records to reflect the false emails.
Landau engaged in the misconduct January 2014 and January 2017, while Campbell did so between August 2015 and March 2017, ASIC said.
While the AAT acknowledged both men had acted dishonestly and breached section 1041H of the Corporations Act, the tribunal said it is satisfied that neither of them will engage in similar conduct in the future.
Landau and Campbell were authorised representatives of Macquarie from 2007 to 2017, at which time Macquarie reported the misconduct to ASIC and dismissed both advisers.
Both advisers then went on to be licensed by Shaw and Partners for more than 12 months before they were banned by the regulator.
"The view was expressed to me that if they were banned for three years or more, they would no longer have any connection with the clients that they brought to their new employer," deputy president B W Rayment wrote in the decision.
According to the AAT, Landau and Campbell also worked together prior to joining Macquarie.
ASIC said it is considering the AAT's decision.