Australian regulator suspends AFS licence of KP International Group Australia Pty Ltd

Maria Nikolova

ASIC is concerned that KP International did not adequately address systemic issues identified by the Financial Ombudsman Service.

The Australian Securities & Investments Commission (ASIC) today announces that it has suspended the Australian financial services (AFS) licence of KP International Group Australia Pty Ltd. The suspension is set to be in force until September 23, 2020.

The suspension is implemented in response to ASIC concerns about KP International not adequately addressing systemic issues identified by the Financial Ombudsman Service (now known as Australian Financial Complaints Authority or AFCA). Furthermore, the regulator was concerned that certain exclusions in KP’s professional indemnity insurance cover did not meet minimum adequacy requirements.

In particular, the Financial Ombudsman Service identified that at least 23 clients of KP International were affected by systemic issues. But KP International did not:

  • review the relevant client files to determine whether it had engaged in misconduct assess whether remediation was necessary; or
  • take reasonable steps to provide remediation where required.

Due to this, ASIC determined that KP International had failed to take all necessary steps to ensure that the financial services covered by its licence were provided efficiently, honestly and fairly. ASIC also found KP International’s professional indemnity insurance cover had exclusions that made it inadequate for the licensee’s business and any liabilities arising from potential compensation claims.

The regulator notes that licensees are expected to have appropriate professional indemnity insurance cover to be able to compensate clients who suffer losses due to a breach of financial services obligations by either the licensee or its representatives.

KP International, a Sydney-based financial services provider, is required to remain a member of AFCA and to obtain adequate professional indemnity insurance during the licence suspension period. The period of suspension is poised to allow the licensee to make all necessary changes to address ASIC’s concerns.

The suspension of KP International’s AFS licence is part of ASIC’s ongoing efforts to improve standards across the financial services industry.

The firm may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

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


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.