ASIC tightens licence conditions for forex trader
The Australian Securities and Investments Commission (ASIC) has imposed additional licence conditions on a Sydney-based foreign exchange trader citing concerns about the adequacy of it market risk management systems.
ASIC has imposed three additional conditions on the Australian financial services (AFS) licence of Roco International Pty Ltd, following a surveillance of issuers of retail over-the-counter derivatives.
As a result of this surveillance Roco will be required to document its governance, internal control and compliance arrangements for managing market risk and engage an independent expert to review and report on the continuing adequacy and effectiveness of Roco's risk management systems over a two-year period. The third condition will be to implement any recommendations made by the independent expert.
ASIC stated that it acknowledged that Roco had agreed to the appointment of an independent expert to review the business whose main business is dealing and making a market in margin foreign exchange contracts to retail clients.
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