The Australian Securities and Investments Commission (ASIC) today announced the cancellation of the Australian financial services licence (AFS) licence of Gallop International Group Pty Ltd, formerly known as Weather Pro Exchange Pty Ltd (ACN 147 664 551) (Gallop).
ASIC said that it found that Gallop had repeatedly failed to comply with the conditions of its AFS licence or its obligations under financial services laws. The findings were related to late lodging of financial statements, audit reports, breach reports, notifications of change in control and the appointment of an auditor.
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ASIC Commissioner John Price said: “The opportunity to hold an Australian financial services licence requires compliance with some fundamental obligations, including reporting requirements. Where licensees fail to meet those obligations, ASIC will act to remove them from the financial services industry.”
Registered in Sydney, Gallop seems to focus on the Chinese-speaking market like many other financial trading firms in Australia. Besides English, its website only supports traditional Chinese and simplified Chinese. Its platform offering includes MT4 desktop and mobile apps for trading forex, precious metals and CFDs.
The cancellation of the AFS licence is effective from 24 May 2017. Gallop has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
The CFD and FX industry has been under severe scrutiny by ASIC in recent times.
ASIC having the ability to ban products is cause for concern to many, given the lengthy and expensive review processes of ASIC decisions through the Administrative Appeals Tribunal and the Federal Court.