Sydney-based retail derivatives issuer Apex Derivatives will be wound up after the Australian Securities and Investments Commission (ASIC) received orders in the Federal Court.
The regulator issued a court application on 28 May 2013 seeking the company — which promoted trading in forex and contracts for difference via its website — to be wound up because it advertised through its website that it had an Australian Financial Services (AFS) licence, when it did not.
In addition, ASIC stated in its letter that Apex appeared to be insolvent, had ceased business operations and, from February 2013, did not have a director resident in Australia.
On 6 February, the regulator was advised that Apex did not have enough cash to repay 270 clients in full; it held net tangible assets of less than $500,000 and was in breach of its AFS licence requirements.
The company's AFS licence was subsequently cancelled by ASIC on 20 February.
ASIC received court orders to wind up the company on 28 June 2013.
Daniel Walley and Scott Pascoe of PPB Advisory have been appointed liquidators by the court.
