The corporate regulator has banned a broker for spreading false rumours that Macquarie Group Ltd was having trouble meeting withdrawals on one of its cash management trusts after a run on the investment.

The ban is the first ordered by the Australian Securities and Investments Commission (ASIC) as a result of Project Mint, launched in March last year to investigate false or misleading rumours and predatory trading in the marketplace.

ASIC said on Monday it had banned Richard John Macphillamy, 32, from providing financial services for 18 months, for not complying with the Corporations Act.

The commission found he sent emails to 32 traders on September 17, 2008, with false information about Macquarie, as a representative of Linwar Securities.

The emails said there was a run on the Macquarie Cash Management Trust that had affected Macquarie’s ability to meet the withdrawals and that the value of shares in Macquarie would halve overnight, according to ASIC.

“This was untrue,” ASIC said in a statement.

“Given the turmoil then prevailing in financial markets, Mr Macphillamy’s conduct was rash, ill-judged and wholly inappropriate.”

However, there was no evidence that Mr Macphillamy had any dishonest purpose or was engaged in manipulative behaviour, and this was in his favour, ASIC said.

During September 2008, financial markets in Australia and around the world exhibited very high volatility after confidence was dented when US investment bank Lehman Brothers went into bankruptcy on September 15.

Macquarie shares fell by as much as 41 per cent that month to $26.05 before bouncing back 42 per cent to end the month at $37.

The historic volatility index for the stock more than tripled to over 200 points in September from about 60 at the end of August, 2008.

ASIC said on Monday Mr Macphillamy was the first to be banned as a result of Project Mint.

In September last year, ASIC expanded the probe saying it was specifically looking into false rumours about Macquarie.

Mr Macphillamy has the right to appeal to the Administrative Appeals Tribuanl to review the decision, ASIC said.

Macquare shares closed at $23.80 on Monday, up 30 cents, in a stronger broader market.

AAP