Former Sonray platform Saxo Bank cops licence conditions
Saxo Bank, the former trading platform provider for collapsed broker Sonray Capital Markets, has had additional conditions placed on its Australian financial services licence following an investigation by the Australian Securities and Investments Commission (ASIC).
The investigation focused on the risk management practices of Saxo Bank, and the new licence conditions apply to Saxo Capital Markets.
It will now be required to have an expert review and report on the adequacy of its risk management systems, and to implement recommended changes from the report within six months.
Saxo Capital Markets will have to continue to engage the expert for a further 18 months of reviews and reporting, and provide ASIC on a bi-annual basis with independent verification of client monies held.
Under its wholesale licence Saxo had contracted a number of retail licensees, including Sonray, to facilitate the trading of various financial products on its trading platform Saxo Trader.
However, it will now provide services to retail clients directly through Saxo Capital Markets, ASIC stated.
Sonray collapsed and entered voluntary administration in June 2010. In September 2011 its former director, Russell Johnson, faced 24 criminal charges in Melbourne Magistrates Court, and in October 2011 its former chief executive Scott Murray was sentenced to five years in jail.
Recommended for you
After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision.
Hot on the heels of its AMP advice acquisition last year, Entireti has acquired licensee solution provider IOOF Alliances from Insignia, enhancing its offering for self-licensed advisers.
Over 600 AFSLs – a third of the total number – are operating with just one adviser, according to Wealth Data, reflecting the rise of self-licensing.
Wealth management firm LGT Crestone has appointed Darragh Kennelly as a senior investment analyst to help the firm scale its alternatives platform.
