ASIC targets margin FX provider
The Australian Securities and Investments Commission (ASIC) has forced margin foreign exchange (FX) provider FX Primus to alter its websites after it was found to have provided unlicensed financial services to Australian investors.
The margin FX and contracts for difference trading provider was found to have provided unlicensed financial services under several entities within the FX Primus group of companies, including FXPrimus Australia, FX Primus Group, and FX Primus Europe, collectively known as FX Primus.
FX Primus Europe said it had hundreds of Australian investors.
One of their various websites (www.fxprimus.com) stated that it was authorised to deal in financial products in Australia and adhered to ASIC regulation.
The website said "[FX Primus is] operating under the jurisdiction of the Australian Securities & Investment Commission (ASIC)" and "[FX Primus is] operating under ASIC regulations".
ASIC Commissioner Cathie Armour said financial service providers have to be licensed in Australia before they offer financial services to Australian investors.
"ASIC will not hesitate to take action where we have concerns Australian investors are being targeted by unlicensed or unauthorised operators," Armour said.
Clients who received financial services from the unauthorised group could be entitled to withdraw their agreement and a refund of their brokerage commissions and other fees paid to the firm.
ASIC has also moved to place an interim stop order on the prospectus lodged in April by the firm in relation to its initial public offering, which means it cannot make offers, issues, sales or transfers of its shares in FX Primus Group.
AUTHOR
Malavika Santhebennur
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