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
ASIC
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading
Read this Term). 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.
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."
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
ASIC
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading
The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading
Read this Term). 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.
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."
