ASIC Cancelled AFS licence of FXOpen AU

ASIC has cancelled the Australian financial services (AFS) licence of FXOpen AU Pty Ltd (FXOpen AU) after an investigation revealed serious concerns about its lack of human resources to provide financial services and carry out supervisory arrangements.

ASIC stated on its official website, that ASICs investigation also found that FXOpen AU failed to comply with its obligations as an AFS licensee, including:

• maintaining competence to provide financial services covered by the licence

• complying with the ‘key person’ condition on its licence, and

• complying with financial services laws.

FXOpen AU's failure to comply with its fundamental requirements as an AFS licensee prompted ASIC to cancel the license to protect existing and future clients from any breaches of its core obligations.

According to the authority, FXOpen AU has held AFS licence 412871 since 12 December 2011, allowing it to issue CFDs. CFDs are leveraged derivative contracts that would enable a client to speculate on the change in the value of an underlying asset, such as foreign exchange rates, stock market indices, single equities, commodities, or crypto-assets.

About ASIC

ASIC is an independent Australian Government body. Its role under the ASIC Act is to:

• maintain, facilitate, and improve the performance of the financial system and entities in it

• promote confident and informed participation by investors and consumers in the financial system

• administer the law effectively and with minimal procedural requirements

• receive, process, and store, efficiently and quickly, the information we receive

• make information about companies and other bodies available to the public as soon as practicable

• take whatever action we can, and which is necessary, to enforce and give effect to the law.

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