The crypto exchange FTX collapsed last week following a liquidity crunch and a subsequent hack which drained millions of dollars from the company which was already in a tough spot. As allegations of customer fund misappropriation surfaced and prompted regulatory scrutiny, investors are reluctant to provide capital to the exchange. Last week, FTX founder Sam…
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In its investigation, ASIC found that Suncoast Trading, Equity Trade, nor Jennings hold the necessary Australian Financial Services licence to provide financial services. Furthermore, it was discovered that Jennings had some clients put their deposits into his personal trading account and traded CFDs without consulting them. He made false or misleading statements to his clients…
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According to ASIC, the Courtney House companies convinced investors that their funds would be traded in Forex and Futures markets, however, only 3% of those funds were actually traded. Instead, the amounts paid to investors on monthly basis, came from the deposits of new investors. The Australian regulator stated: In addition to offering purported ‘standard’…
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Regarding Bringans, the regulator stated: In banning Mr Bringans, ASIC found that he is not adequately trained and competent, that he is not a fit and proper person to provide financial services, and that he ignored one of his key duties as a responsible manager, which was to ensure that Sirius Financial complied with the…
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ASIC Deputy Chair Sarah Court said: We allege that, despite what BPS represented in its marketing, Qoin merchant numbers have been declining, and that there have been periods of time where it was not possible to exchange Qoin tokens through independent exchanges. ASIC is particularly concerned about the alleged misrepresentation that the Qoin Facility is…
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ASIC’s interim order is valid for 21 and stops the funds from issuing interest. Investors in these funds are likely to experience significant price volatility and deep negative returns in periods of asset price decline. The highly volatile and complex nature of crypto-assets makes the investments “risky and speculative”. Holon has disclosed in its product…
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The watchdog further detailed that CMHFG failed to lodge its profit and loss statements and balance sheets for several financial years, inclduing 2019, 2020, 2021. ASIC noted that the cancellation of the license took effect on 25 August 2022. Earlier this year, the regulator the AFS licence of Dixon Advisory & Superannuation Services Pty Limited,…
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The Aussie regulator said: The financial requirements aim to ensure Australian financial services licensees have adequate financial resources to operate their business in compliance with the Corporations Act 2001, and to manage the operational risks inherent in the OTC derivatives market. Minimizing risk to retail traders ASIC has been bringing restrictions to protect retail traders.…
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The Australian regulator also released a report summarising the impact of its ban. Before the initial ban, ASIC stated that between 74% and 77% of active retail clients lost money trading binary options, with retail client accounts making net losses of $14 million in aggregate. In addition, they explained that loss-making retail client accounts made…
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ASIC will also monitor two of ASX subsidiaries, ASX Clear and ASX Settlement, and their compliance with the additional license conditions, imposed in November 2021, following an outage on the stock trading platform. The official corporate plan stated: We will also analyse and assess the ASX operating rules changes necessary for the CHESS replacement, and…
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