ASIC cancels AFS license of Berndale Capital Securities, bans Stavro D’Amore from financial services industry

Maria Nikolova

ASIC has found that Berndale Capital failed to comply with the client money reporting requirements and failed to lodge annual financial statements, and audit reports.

The Australian Securities & Investments Commission (ASIC) has once again shown its determination to act against Forex firms that fail to meet regulatory requirements. Earlier today, the Australian regulator announced the cancellation of the Australian Financial Services (AFS) licence of Melbourne-based retail OTC derivative issuer Berndale Capital Securities Pty Ltd.

ASIC has also banned Berndale’s ex-director Stavro D’Amore, of Middle Park, Victoria, from providing financial services for a period of six years. D’Amore was the sole responsible manager and key person on the AFS licence.

ASIC found that Berndale:

  • failed to take reasonable steps to ensure that its representative complied with financial services laws;
  • failed to have adequate financial and human resources;
  • failed to maintain an appropriate internal dispute resolution system;
  • failed to provide financial services efficiently, honestly and fairly;
  • failed to comply with the client money reporting requirements;
  • failed to lodge annual financial statements, and audit reports; and
  • is likely to contravene its general obligations as an AFS licensee.

ASIC also found Mr D’Amore:

  • was involved in contraventions of financial services laws by Berndale;
  • is not adequately trained, or is not competent, to provide financial services; and
  • is likely to contravene a financial services law.

To reduce the impact of the cancellation on past and existing clients of the firm, the cancellation will be subject to a specification that the AFS licence continues until December 20, 2018 for the purpose of finalising existing client trading accounts.

Berndale and D’Amore have the right to request review of ASIC’s decision at the Administrative Appeals Tribunal.

In a similar action earlier this month, ASIC cancelled the Australian financial services (AFS) licence of the retail OTC derivative issuer AGM Markets. The cancellation followed an ASIC investigation which demonstrated that AGM’s financial services operations involved core elements of unconscionability and unmanaged conflicts of interest and followed a business model that disregarded key conduct requirements.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<