ASIC Revokes AFS licence of CFDs and Forex Contracts Issuer FXOpen AU

The Australian Securities and Investments Commission (ASIC) today announced the cancellation of the Australian Financial Services (AFS) licence under number 412871 of FXOpen AU Pty Ltd (FXOpen AU), a contracts for difference (CFDs) and foreign exchange contracts issuer. This came after an investigation identified serious concerns about the inadequacy of the company’s human resources to provide financial services and to carry out supervisory arrangements.

ASIC’s investigation also found that FXOpen AU failed to comply with its obligations as an AFS licensee, including:

• maintaining competence to provide financial services covered by the licence
• complying with the ‘key person’ condition on its licence, and
• complying with financial services laws.

FXOpen AU has held the AFS licences since 12 December 2011, allowing it to issue CFDs. ASIC determined that FXOpen AU failed to comply with its core obligations as an AFS licensee, which justifies the cancellation to protect existing and future clients from possible future breaches of its core obligations.

“By cancelling the licence, 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,” stated the Australian financial regulator.