You’re Nicked Mate! Australian Regulator Shuts Down Apex Derivatives And Liquidates Its Assets
- Sydney-based OTC derivatives and FX firm Apex Derivatives has today been wound up by Australian regulator ASIC for falsely purporting to be ASIC regulated, and for continuing business whilst insolvent.
Australia’s financial markets regulator 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 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 Read this Term is certainly beginning to prove itself as an iron fist in a velvet glove, having quietly but effectively strengthened its regulatory powers during the course of the last few months.
Today’s actions against 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 and OTC derivatives broker Apex Derivatives are certainly no exception, the regulator having completed the winding up of the firm and liquidation of its assets for promoting the trading of forex and contracts for difference derivatives via its website whilst purporting to have an ASIC Australian Financial Services (AFS) license, when it in fact did not.
Added to this offence, the regulator found that the firm was trading whilst insolvent, had ceased all business operations and from February this year did not have a director residing in Australia.
No Money Left
On February 6 this year, it was brought to the attention of ASIC that the firm did not have enough money to pay back its 270 clients in full should the cessation of its business arise, as it held tangible assets of less than $500,000 and was in breach of AFS licensing requirements. As a result of this, ASIC canceled its AFS license, but the firm continued to solicit for business via its website whilst giving the impression that it was still licensed.
ASIC takes a dim view of lack of capitalization, and late last year issued a notice that it was considering increasing the net capital requirements for FX firms.
On June 28 this year, ASIC took this case to the Australian Federal Court and obtained orders to wind up the Sydney-based retail OTC derivatives issuer, and began the process which only took a matter of two weeks to complete.
Daniel Walley and Scott Pascoe of PPB Advisory have been appointed by the court as liquidators.
Australia’s financial markets regulator 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 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 Read this Term is certainly beginning to prove itself as an iron fist in a velvet glove, having quietly but effectively strengthened its regulatory powers during the course of the last few months.
Today’s actions against 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 and OTC derivatives broker Apex Derivatives are certainly no exception, the regulator having completed the winding up of the firm and liquidation of its assets for promoting the trading of forex and contracts for difference derivatives via its website whilst purporting to have an ASIC Australian Financial Services (AFS) license, when it in fact did not.
Added to this offence, the regulator found that the firm was trading whilst insolvent, had ceased all business operations and from February this year did not have a director residing in Australia.
No Money Left
On February 6 this year, it was brought to the attention of ASIC that the firm did not have enough money to pay back its 270 clients in full should the cessation of its business arise, as it held tangible assets of less than $500,000 and was in breach of AFS licensing requirements. As a result of this, ASIC canceled its AFS license, but the firm continued to solicit for business via its website whilst giving the impression that it was still licensed.
ASIC takes a dim view of lack of capitalization, and late last year issued a notice that it was considering increasing the net capital requirements for FX firms.
On June 28 this year, ASIC took this case to the Australian Federal Court and obtained orders to wind up the Sydney-based retail OTC derivatives issuer, and began the process which only took a matter of two weeks to complete.
Daniel Walley and Scott Pascoe of PPB Advisory have been appointed by the court as liquidators.