Financial regulator Australian Securities and Investments Commission (ASIC) starts its crackdown on unregulated brokers. Posted on the authority’s website is an official warning about three illegally operating companies: a clone of AGM Markets, OT Markets, and Ozifin.

Discover credible partners and premium clients at China’s leading finance event!

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

These firms’ activities in Australian territory have been unsanctioned by authorities. After several consumers raised red flags, the financial services regulation authority launched an investigation, which resulted in a court order that puts restrictions on these firms operations in Australia.

The Federal Court issued orders that restrain the entities from removing their assets from Australia and bar them from disposing of their property.Their assets are now frozen in two specified bank accounts.

The ASIC crackdown also includes two unnamed individuals. They are involved with the clone of AGM Markets and OT Markets and are barred from leaving Australia without the Federal Court’s consent.

Aggressive Sales Operations

Aside from the clone of AGM Markets, the other entities mentioned by the ASIC have been operating the OT Capital brands (otcapital.com, otcapital.net.au, and otcapital.info) and tradefinancial.com.au.

ASIC concerns revolve around these entities offering personal advice to retail investors. Without licenses from the AFSL, the clone company is damaging the officially licensed one, AGM Markets. The fraudulent entities are seen as engaging in misleading and deceptive conduct.

As a result of this conduct the ASIC issues a warning to potential investors. The regulator sought the injunctions to protect investor funds while an on-going ASIC investigation continues.

The regulator urges these firms’ clients to report information to ASIC on the clone of AGM Markets, OT Markets and/or Ozifin, on 1300 300 630 or go to www.asic.gov.au/complain.