Recent ASIC License CancellationsBy Lex Yaranu | Friday, August 28th, 2015
The Australian Securities and Investment Commission (ASIC) is continuing its renewed focus on the retail Over the Counter (OTC) derivative market in Australia, which is where margin spot FX and binary options fall into.
As a result, a number of decisions have been taken concerning brokers operating in this market space.
Below is a list of recent outcomes of ASIC investigations and punitive actions taken against certain brokers.
1) The AFS licence of FX provider Rainbow Legend Group Pty Ltd (operating under the Rainbow Legend brand) has been suspended for presenting false and misleading statements and failing to cmply with ASIC requirements.
2) Following an ASIC investigation which revealed some misleading statements on its website, Advanced Markets has agreed to remove this material from its website.
3) The suspension of AFS licence of AGM Markets Pty Ltd (AGM) has been confirmed by ASIC, which has also asked investors not to do business with the brand of this company known as Grandegoldens as it is not licensed to offer OTC products in Australia.
4) The AFS license of one of Australia’s earliest binary options brokers, Enfinium, has been cancelled due to inadequate risk management systems.
5) Following extensive surveillance, ASIC found out that Calibre Investment altered the way it offers OTC products to retail clients, different from ASIC guidelines. The company, its brand and its former director and general manager, Quinten Hunter, have been banned from carrying on a financial services business in Australia.
6) An investigation by ASIC showed that Vault Market had only one director, Mr MD Anamul Amin, in contravention of ASIC guidelines which mandate that companies offering financial services must have a minimum of three directors with relevant industry experience. Vault Market and its sole director have been banned from operating in the Australian financial services industry.
7) Pepperstone has agrred to stop providing financial services in Japan as part of collaborative efforts by both agencies to root out companies that are not licensed to offer such services in their individual countries. Pepperstone had claimed to be licensed by the JFSA but investigations by ASIC revealed that they do not hold any license from the JFSA.
8) The AFS licence of online OTC broker Global Derivative Services has been cancelled after an investigation revealed that the company failed to comply with a number of its licensing obligations.
9) The AFS licence of Australian Capital Advisory Services Pty Ltd was suspended on the grounds that it had stopped providing financial services following a change in shareholding structure and ownership.
We will continue to bring you more news about actions of regulators in sanitizing the binary options marketplace as they break.Published in News & Analysis