ASIC suspends AFS licence of Direct FX for compliance failures
Australia
- 04/26/2018
- Warning
- Australian Securities and Investments Commission
Detail
ASIC has suspended the Australian financial services (AFS) licence of Direct FX Trading Pty Ltd (AFS licence 305539) (Direct FX) for a minimum of ten weeks and up to six months, depending on whether key criteria are satisfied.
Direct FX's AFS licence was suspended after ASIC found:
- Direct FX had failed to comply with its Net Tangible Asset (NTA) requirements outlined in Class Order 12/752, including not having sufficient cash and cash equivalents to comply with its requirements on multiple occasions;
- Direct FX failed to comply with a s912C(3) Direction from 10 February until 12 April 2018 to give ASIC an audit report covering certain important matters, including information about Direct FX's compliance with its financial obligations that would assist ASIC in making an assessment about Direct FX's competence, attitude to compliance and financial soundness; and
- Direct FX failed to replace key persons named on its licence.
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