The Australian Securities and Investments Commission (ASIC) has suspended the Australian financial services licence (AFSL) of a foreign exchange (FX) provider as part of its ongoing oversight of the margin FX industry and retail investment in that space.
ASIC stated it has suspended the AFSL of AGM Markets Pty Ltd for six months from 26 March 2015 following an investigation but did not state specifically what its concerns where with AGM.
According to ASIC, AGM had already stopped operating a financial services business in May 2014 but indicated it would recommence its business at the end of April after making a series of changes to its name and corporate structure. AGM had been previously known as Fixi Australia Pty Ltd, Forbes Wealth Services Pty Ltd and Easy Fortune& Ever Wealth Pty Ltd.
ASIC stated it has the power to suspend or cancel an AFSL where a financial services business has ceased to operate and the granting of an AFSL was not an ongoing right where a company no longer operates within the financial services market.
“Participants in the margin FX industry can be exposed to turmoil in currency markets and ASIC wants to ensure licensees wanting to be part of this sector are in a position to meet their AFS licence obligations. If businesses can’t demonstrate this, ASIC can cancel licences,” ASIC Commissioner Greg Tanzer said.
