Australian Federal Police raided Sydney stockbroker Evolution Capital’s headquarters Wednesday as part of an ongoing Australian Securities and Investments Commission investigation. Authorities also searched properties connected to founder Stephen Silver and head of trading Mendy Amzalak. The probe reportedly centers on trading activity in ASX-listed Vection Technologies, an AI software company, and a second unnamed stock.
Evolution maintained deep commercial ties with Vection, leading capital raises totaling over A$24 million in 2025 and publishing paid research with a speculative buy rating showing 204% upside. The firm earned fees and options from underwriting transactions while simultaneously issuing bullish reports on the same company. No charges have been filed, and Evolution, ASIC, and AFP declined comment to local media.
The regulatory scrutiny raises questions about potential conflicts between paid research, capital raising, and proprietary trading activities at smaller brokerages.
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FXnCO Insight
** Brokers with ASX small-cap exposure should review conflict-of-interest protocols immediately, as regulators appear focused on arrangements combining paid research with capital-raising mandates.
Source: Finance Magnates