Australian Regulator Cancels Licence of China-Focused MT4 Broker Gallop

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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Pty Ltd (ACN 147 664 551) (Gallop). [gptAdvertisement]

The London Summit 2017 is coming, get involved!

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.

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 Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, 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.

Background

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.