ASIC-regulated Prospero Markets gets AFS license suspended for not submitting audit report

Rick Steves

Founded in 2012, the CFD broker offers access to global forex (FX), indices, Share CFDs, commodities, precious metals, VIX, and more, via the MT4 trading platform.

The Australian Securities and Investments Commission (ASIC) has taken regulatory action against Prospero Markets Pty Ltd (Prospero), a provider of over-the-counter (OTC) derivatives.

On 22 December 2023, ASIC announced the suspension of Prospero’s Australian Financial Services (AFS) licence, effective from 20 December 2023 until 28 February 2024. This suspension prohibits the CFD broker from offering financial services during this period.

Prospero didn’t submit its annual financial statement and audit report

ASIC’s decision followed an administrative hearing where it was determined that Prospero had failed to submit its annual financial statement and audit report for the fiscal year ending 30 June 2023 within the required timeframe. This failure was in violation of the conditions of Prospero’s AFS licence.

In addition to the suspension, Prospero has agreed to an undertaking with ASIC, promising not to handle client funds without explicit permission from ASIC. This undertaking is in place until at least 8 February 2024, providing ASIC with the opportunity to further investigate the company’s activities.

ASIC’s concerns with Prospero date back to 1 March 2021, leading to the commencement of an investigation into the company’s suspected breaches of the Corporations Act 2001 on 16 November 2023. The investigation is ongoing, and Prospero is reportedly cooperating with ASIC in this matter.

If Prospero fails to lodge its overdue financial documents during the suspension period, ASIC may extend the suspension or even consider canceling Prospero’s licence.

Prospero, which holds AFS licence number 423034, has been authorized to provide a range of services to both retail and wholesale clients. These services include issuing and making a market in derivatives and foreign exchange contracts, dealing in these contracts on behalf of clients, and providing financial product advice related to derivatives and foreign exchange contracts.

The broker retains the right to appeal ASIC’s decision by applying to the Administrative Appeals Tribunal for a review. The suspension and the undertaking represent significant regulatory measures by ASIC to ensure compliance within the financial services industry, particularly in the areas of derivatives and foreign exchange contracts.

Prospero Markets Pty Ltd is a financial services provider headquartered in Melbourne, Australia, and regulated by the Australian Securities and Investments Commission (AFSL: 423 034).

Founded in 2012, the brokerage firm offers access to global forex (FX), indices, Share CFDs, commodities, precious metals, VIX, and more, via the MT4 trading platform.

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