Sector developments and company hires

Broker charged over mispricing

The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI portfolios, in exchange for the PPI traders sending securities trades to AOC. Though both AOC and Gonzalez knew Dinucci was providing price quotes to PPI on behalf of AOC, they failed to establish or implement policies or procedures reasonably designed to prevent and detect Dinucci’s misconduct. Without admitting or denying the SEC’s findings, AOC and Gonzalez agreed to pay penalties of US$250,000 and US$40,000 respectively. The SEC’s orders also censure AOC and impose a 12-month supervisory bar against Gonzalez.

PM appointed

Challenger Investment Partners has hired Tom Mowl as a senior portfolio manager in its London office, with a focus on offshore ABS. Mowl was previoulsy at WyeTree Asset Management where he was a portfolio manager focussing on US and European ABS.