The Australian Securities and Investments Commission (ASIC) announced this Thursday that it has suspended the Australian financial services (AFS) license of Forex Plus Australia Pty Ltd (Forex Plus) and canceled the AFS license of Squareknot Pty Ltd.
The Australian regulator has suspended the AFS license of Forex Plus for six months, effective from the 5th of May 2020. According to the authority, the license was suspended after it became aware that the company hadn’t been providing financial services for some time.
Under the Corporations Act, the Aussie watchdog may suspend or cancel an AFS license if the licensee has ceased providing financial services. Forex Plus was authorized to provide advice and make a market for foreign exchange contracts for wholesale clients.
As Finance Magnates reported, as of February this year, ASIC was granted new powers which allow it to cancel both AFSL and Australian Credit License (ACL) if the licensee does not begin its operations within six months of the license being granted.
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Furthermore, the agency said that Forex Plus failed to lodge its audited accounts for a number of years. The company has the right to appeal ASIC’s decision with the Administrative Appeals Tribunal.
“ASIC suspended rather than cancelled Forex Plus’ licence because the licensee has indicated that it may recommence providing financial services. Forex Plus will be required to lodge its audited accounts during the suspension period if it intends to recommence providing financial services,” the regulator said in its statement today.
ASIC cancels Squareknot AFSL
In addition to Forex Plus, ASIC also said that it had cancelled the license of Sydney-based financial services provider Squareknot, which took effect on the 6th of May 2020. Specifically, the regulator found that the company did not meet the base level financial requirements of its license.
Squareknot was granted AFS license no. 454694 on the 23rd of December 2015. It was authorized to provide general advice on, and deal in, securities for wholesale clients.