AETOS, which gave up its United Kingdom licence last June, has now closed down its offshore operations under the Mauritius-licensed entity, FinanceMagnates.com has learned exclusively. The contracts for differences (CFDs) broker has stopped onboarding any new clients under its offshore unit.
“As part of a broader strategic review, AETOS has decided to step back from certain offshore markets, including our entities regulated in Mauritius and Seychelles,” an AETOS representative told FinanceMagnates.com.
After the market close on 12 September, client accounts and related trading services under these entities were transferred to two independent, regulated brokers.
The Aussie Unit Remains Operational
The AETOS representative further confirmed that the shuttering of the offshore business does not impact its Australia-based operations. The broker’s website still registers new customers if their country of residence is Australia. Residency in any other country is not accepted.
“Importantly, this adjustment does not impact our operations in Australia,” the representative said about the future of Aussie business following the shutdown of offshore businesses. “AETOS continues to operate in full compliance with Australian regulations under its ASIC licence.”
The offshore operations were shut down only a month after AETOS gave up its Financial Conduct Authority (FCA) licence in the United Kingdom. The broker subsequently dissolved its UK entity, thus exiting the country entirely.
Read more: Around 20% FCA-Regulated CFD Brokers Are Inactive
AETOS is one of the older retail forex brokers, operating in the sector since around 2007. The brand was founded and is headquartered in Sydney. Chinese online entrepreneur Yongqiang Lu controls the overall brand.
Many Exits from CFDs
While many new brokers are entering the CFDs industry, several brands are also closing parts of their operations. Most exits are from the United Kingdom and the European Union.
FinanceMagnates.com reported last month that Hirose Financial “permanently closed” onboarding new retail traders under its United Kingdom and Labuan-regulated entities. However, the broker's Japanese operations appear to still be running.
ADSS and TrivePro are two other industry names that have closed their presence in the UK in recent years. ICM.com is also in the process of relinquishing its FCA licence. Orbex is another brand that shut its Cyprus-based operations last July and is now offshore with licences from Mauritius and Seychelles.
