FXOpen has become the latest target of the Australian Securities and Investments Commission (ASIC), as the regulator canceled the license of the forex and contracts for differences (CFDs) broker. The Australian Financial Services (AFS) license was held by the local entity FXOpen AU Pty Ltd.
Announced today (Wednesday), the regulator detailed that the action against the retail broker came after an investigation identified serious concerns about the “inadequacy of its human resources to provide financial services and to carry out supervisory arrangements.”
ASIC elaborated that the broker failed to meet three key AFS licensing requirements, which include maintaining competence to provide financial services, complying with the ‘key person’ condition on its license, and complying with financial services laws.
According to the regulator, canceling the broker’s license would protect its existing and future clients from likely future breaches of its core obligations.
“By canceling the license, ASIC also aims to deter other AFS licensees from failing to comply with their obligations, promote the objects of fairness, honesty, and professionalism by those who provide financial services, and support confident and informed participation of investors and consumers in the financial system,” the regulator noted.
Finance Magnates also reached out to FXOpen but received no response as of press time.
FXOpen is a well-known name in the FX and CFDs brokerage industry and was founded in 2005. Besides Australia, the brokerage operates under licenses from regulators in the United Kingdom and Cyprus. It also has an offshore entity registered in the Caribbean island of Nevis, which is part of Saint Kitts and Nevis.
This article was written by Arnab Shome at www.financemagnates.com.
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