ASIC crackdown on derivative business
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services Licence (AFSL) of Global Derivative Services (GDS) after it was failed to comply with AFSL obligations.
The company, which offers financial advice in binary options trading and contracts for difference, failed to comply with the conditions of the licence including the appointment and on-going competency of the key person on the AFSL.
It also failed in its lodgement of accounts, payments of debts, and provision of updated details with the Financial Ombudsman Service on its website.
It also failed to maintain an Australian resident director and registered office, and notify of changes to the responsible person.
The company's only director, Brenton Ganesh Nair, lives in South Africa.
ASIC said it is focusing on retail over-the-counter (OTC) derivative providers, including margin foreign exchange.
It is increasingly seeing entities applying for an AFSL that lets them operate a retail OTC derivative business, especially in retail margin foreign exchange services.
GDS can file an application for review of ASIC's decision with the Administrative Appeals Tribunal.
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