The Australian Securities and Investments Commission (ASIC) said Wednesday that it has cancelled the Australian financial services (AFS) license of over-the-counter (OTC) derivatives issuer, Prospero Markets Pty Ltd (in liquidation), effective from September 25, 2024.
ASIC Cancels Prospero Markets AFS License
Prospero’s AFS license was suspended in December 2023 after the company failed to submit its 2023 audited financial accounts.
Following an application by ASIC, the Federal Court ordered Prospero to be wound up and liquidators appointed in April 2024.
Under the Corporations Act, ASIC said it has the power to suspend or cancel an AFS license if the licensee is being wound up or has ceased to carry on a financial services business.
However, ASIC has specified that Prospero must continue to be a member of the Australian Financial Complaints Authority (AFCA), maintain arrangements for compensating retail clients, and comply with the ASIC Client Money Reporting Rules until March 25, 2026.
Prospero can appeal ASIC’s decision to cancel its AFS license to the Administrative Appeals Tribunal.
The investigation into Prospero began in November 2023 following the Australian Federal Police’s Operation Avarus-Nightwolf, which resulted in charges of money laundering against former officers and responsible managers of Prospero.
