After the Australian financial regulator issued a statement earlier this week clarifying its interactions with FXPRIMUS, the brokerage also issued an official statement. A company spokesperson confirmed that the company has been actively complying with local regulations in the jurisdictions where it operates.
The statement reads, “FXPRIMUS has not, does not, and will not intentionally mislead clients with regards to our legal registrations and the regulations by which we operate. The company is fully cognizant that the trust of its clients is paramount, and we believe our track record and focus on safety of client funds clearly demonstrate our commitment to client trust.”
The matter was recently raised in a statement made by the Australian Securities and Investments Commission (ASIC). While the regulator asserts that the company could have misled Australian residents into believing that the firm is authorized to offer financial services, the broker states that it has been transparent in its disclosure that it is not an authorized financial services provider in Australia.
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The statement continues, “Recent press reported that FXPRIMUS was requested by ASIC to cease accepting Australian clients and furthermore relinquish any current Australian clients. FXPRIMUS promptly and concisely complied with these requests. The company advised the small number of Australian clients (less than 1% of overall client base) they would need to cease trading and close their accounts. FXPRIMUS complied with all of the regulators requests, often within 24 hours of receiving said requests.”
The regulator did state that FXPRIMUS made representations on its website suggesting the firm had provided financial services in Australia. The company explains, “The facts are that on May 7, 2014 FXPRIMUS issued a Press Release announcing it had become a Corporate Authorized Representative (“CAR”) in Australia.”
“To clarify, a CAR must be “under” a licensed entity, and the licensed entity must be registered and regulated by the local jurisdiction regulators. Furthermore, when discussing the CAR on our website, no mention was made that FXPRIMUS was directly licensed by the local regulator. FXPRIMUS noted that the company was a CAR, and the text used on the website was identical to verbiage used by other CARs and was pre-approved by counsel,” the statement continued.
Turning to its clients, the firm explains, “FXPRIMUS regrets any confusion or concern these issues have caused its clients. We will continue to operate in conjunction with global regulators and under the principles that have made us a global leader in the FX industry; safety of client funds, innovative products, and an un-biased trading experience for our clients.”