ASIC cancels license of Australian Golden Securities

Maria Nikolova

Australian Golden Securities has not addressed ASIC’s concerns about its failure to meet its licensee obligations, the regulator explains.

The Australian Securities and Investments Commission (ASIC) today unveiled more actions against licensees that have failed to meet their obligations.

ASIC says it has cancelled the Australian financial services (AFS) licence of Melbourne-based Australian Golden Securities Ltd, formerly known as AFS Capital Securities Ltd. The cancellation took effect on May 21, 2020.

The licence of Australian Golden Securities was previously suspended until May 21, 2020.

The regulator explains it made the call to cancel the licence because Australian Golden Securities has not addressed ASIC’s concerns about its failure to meet its licensee obligations. In particular, Australian Golden Securities has failed to:

  • file its financial and audit reports, and
  • address its failure to maintain adequate competence and capacity to provide the financial services covered by its AFS licence.

Under the terms of the licence cancellation, Australian Golden Securities can continue limited operations until January 21, 2021 to facilitate the winding up of its four registered managed investment schemes. Australian Golden Securities is required to maintain public indemnity insurance and AFCA membership for 12 months.

Australian Golden Securities may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.

Let’s recall that, back in April 2017, ASIC banned Dr Bingxing Hu, a responsible manager of Australian Golden Securities, from providing financial services for a period of five years. In June 2019, following Dr Hu making an application to ASIC, the banning order was varied by ASIC by reducing the banning period from five years to four and a half years. In July 2019, Dr Hu applied to the AAT for review of the ASIC variation decision. The application for AAT review was subsequently withdrawn. Dr Hu remains banned from providing financial services.

Read this next

Digital Assets

Bloomberg, Hashdex expect SEC’s imminent approval of Bitcoin ETFs

Hashdex, an asset manager among the 13 contenders for launching a spot Bitcoin exchange-traded fund (ETF) in the United States, anticipates the debut of the first spot Bitcoin ETF by the second quarter of 2024, with a spot Ether ETF expected to follow.

Industry News

Witness the intensifying competition as UF AWARDS MEA 2024 nominations persist!

The countdown is on, with less than two weeks remaining to nominate outstanding brands for this prestigious event, culminating in the highly anticipated ceremony during iFX EXPO Dubai 2024 in January.

Retail FX

Saxo Bank’s FX volumes rise despite overall lackluster turnover

As many currency markets saw a relatively active period in November, Copenhagen-based Saxo Bank reported its monthly metrics, which showed a moderate rebound month-over-month.

Market News

S&P 500 Rally Faces Abrupt Halt: Analysts Assess Market Signals

The S&P 500, a benchmark index tracking the stock performance of 500 of the largest US companies, has ignited a flurry of discussions among financial analysts due to its recent performance.


TraderEvolution at FMLS:23: Andrew Saks on how brokers can go multi-asset

In an insightful interview with FinanceFeeds, Andrew Saks of TraderEvolution Global discussed the industry’s evolution towards multi-asset trading. He highlighted challenges in integrating diverse asset classes and the importance of API connectivity. Andrew also touched on emerging trends in options, futures, and fixed income, underscoring the need for adaptable trading technology in today’s dynamic market.

Market News

Powell’s Pivot Navigating the Dynamics of USD, Interest Rates, and Market Expectations

Federal Reserve Chair Powell has signalled a decisive end to the cycle of interest rate hikes for the USD.

Market News

Inflation Concerns, Policy Divergence, and Market Sentiments in the UK

Amidst the recent global revaluation of inflation, Megan Greene, a steadfast MPC member, advocates for a proactive stance. Addressing concerns in Leeds, she calls for an upward adjustment of the Bank of England’s policy rate, cautioning against the potential risks of a too-conservative approach. Greene questions the assumed restrictiveness in the current monetary stance, suggesting it might be less robust than perceived, especially in scenarios of persistent inflation.

Digital Assets

JPMorgan’s stablecoin ventures into interbank transactions

JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, is set to expand its use case by facilitating interbank transactions on Partior, a blockchain ledger developed in collaboration with DBS Bank, Temasek, and Standard Chartered.

Retail FX

Interactive Brokers’ client base surges past 2.5 million

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.89 million daily average revenue trades, or DARTS, in November 2023 compared to 1.93 million transactions in the prior month. The figure is three percent lower on a yearly basis, and also dropped slightly from a month earlier.