Australian regulator cancels license of KP International Group
ASIC has become aware that all relevant officers of the company had resigned and that the company had ceased to carry on a financial services business.
Less than two months after the Australian Securities & Investments Commission (ASIC) suspended the Australian financial services (AFS) licence of KP International Group Australia Pty Ltd, the regulator has decided to cancel the AFS license of the Sydney-based financial services provider.
Today, ASIC announces that the license was cancelled effective November 22, 2019. The regulator explains that, following the suspension, the company informed ASIC that all relevant officers of the company had resigned and that the company had ceased to carry on a financial services business. Given this, ASIC has cancelled the company’s AFS licence.
The Australian Financial Complaints Authority (AFCA) has notified ASIC that it has received numerous complaints from people located offshore regarding a company purporting to be KP International Group Australia Pty Ltd. The complaints have been launched by consumers who have been unable to withdraw funds from their trading accounts.
AFCA explains that it is only able to consider complaints about financial firms that are its members. Although KP International Group Australia Pty Ltd is currently an AFCA member, it is unclear if the entity used by customers is also an AFCA member.
ASIC does not know if there is a link between the entity provoking the complaints to AFCA and the formerly licensed Australian entity. ASIC’s inquiries are continuing.
The regulator advises consumers to exercise caution in relation to any company purporting to offer financial services under the name KP International Group Australia Pty Ltd.
