media release (15-336MR)

Formax removes false statements about the suspension of its subsidiary's licence

Published

Following concerns raised by ASIC, Formax International Market Limited (Formax) has removed a previously published media release from its group website that falsely claimed its wholly owned subsidiary, Australian Capital Markets Advisory Services Pty Ltd ACN 150 530 331 (ACMAS), had its Australian financial services licence (AFSL) suspended as part of a normal practice that occurs whenever an enterprise restructures. The release also claimed that the suspension will be lifted once the restructure had been finalised.

The suspension by ASIC of an AFSL is not a normal practice that occurs when an entity restructures.

ASIC Commissioner Cathie Armour said, 'ASIC undertakes all action for good reason. It is important that industry and investors understand those reasons. In this case we were concerned to discover an overseas parent commenting in a way that misrepresented the action ASIC had taken and was likely to mislead investors.' 

Background

On 4 August 2015, ASIC suspended the AFSL of retail OTC derivative provider ACMAS until 30 October 2015 on the ground that it had ceased to provide financial services in this jurisdiction. The suspension was subsequently extended to 27 November 2015.

This work continues ASIC's focus on the retail OTC derivative sector, including margin FX and binary options.

Recent outcomes include:

  • Following ASIC's concerns Ingot Brokers (Australia) Pty Ltd rectifying its 'cash and cash equivalents' arrangements to comply with its financial resource requirements (refer: 15-333MR).
  • O.C.M. Online Capital Markets Pty Ltd paying  $30,600 in penalties after ASIC issued three infringement notices for false or misleading online advertising (refer: 15-321MR).
  • cancelling the Australian financial service licence (AFSL) of LSG Group Pty Ltd (refer: 15-293MR).
  • British Virgin Island company FIBO Group Limited and Cyprus company, Trading Point of Financial Instruments Limited (also known by the trading name XM.com), agreeing to cease providing unlicensed financial services to Australians (refer: 15-233MR).
  • suspending the AFS licence of Australian Capital Advisory Services Pty Ltd on the grounds it had ceased providing financial services after a change of control (refer: 15-217MR).
  • following an investigation, Advanced Markets agreeing to change potential misleading statements on its website (refer: 15-085MR).
  • following an investigation, suspending the AFS licence of FX provider AGM Markets Pty Ltd (AGM) (refer: 15-075MR).
  • warning investors not to deal with Grandegoldens, which was not licensed to trade in margin FX in Australia (refer: 15-066MR).
  • cancelling Enfinium’s AFSL because, among other things, concerns around inadequate risk management systems (refer: 15-026MR).
  • following a surveillance, Calibre Investment changing the way it offers FX services to retail clients (refer: 14-327MR).
  • restraining Monarch FX and its former director and general manager, Quinten Hunter, from carrying on a financial services business (refer: 14-342MR).
  • shutting down Vault Market and removing its sole director, Mr MD Anamul Amin, from the financial services industry (refer: 14-309MR).
  • warning investors not to deal with YoutradeFX which was not licensed to trade in margin FX in Australia (refer: 14-306MR).
  • Pepperstone agreeing to stop providing financial services in Japan following inquiries by ASIC that revealed they were not licensed by the Japanese Financial Services Agency (refer: 14-267MR).
  • cancelling the AFSL of online FX broker Global Derivative Services after an investigation found it failed to comply with a number of its licence obligations (refer: 14-226MR).
Media enquiries: Contact ASIC Media Unit