Axi: AxiCorp regains trust of New Zealand regulator

Rick Steves

“AxiCorp has since demonstrated to the FMA that it has taken adequate steps to address the material breaches and that it has adequate systems, processes and resources in place to ensure compliance with the FMC Act and to effectively perform services under the license”, the FMA stated.

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The Financial Markets Authority (FMA) has lifted the suspension on the derivatives issuer license of AxiCorp Financial Services Pty Limited.

The firm operates the FX and CFD broker AxiTrader, which was recently rebranded to Axi.

The New Zealand financial watchdog had originally suspended AxiCorp’s derivatives issuer license in June 2019 in a huge blow for Axi as the multi asset broker was looking to further its global expansion.

Why did the FMA suspend AxiCorp?

The suspension was ordered after findings of material breaches of the Financial Markets Conduct Act 2013. These included:

  • making a regulated offer to retail clients in New Zealand without a compliant Product Disclosure Statement or Disclose register entry;
  • failing to lodge audited financial statements; and
  • failing to obtain an assurance engagement with a qualified auditor, for its processes, procedures and controls, within 4 months of its balance date.

AxiCorp also contravened its license conditions by failing to notify New Zealand’s Financial Markets Authority as soon as practicable of a change to senior or other key staff, following the appointment of its Chief Financial Officer.

AxiCorp is now compliant

The regulator chose to order a suspension as it considered that AxiCorp demonstrated that “it does not have adequate systems, processes, or resources in place to ensure compliance with the Financial Markets Conduct Act, or to effectively perform services under a license.”

The license suspension would be in effect until the AxiCorp addressed the abovementioned issues and the regulator was satisfied with the changes. It seems that now is the case.

“AxiCorp has since demonstrated to the FMA that it has taken adequate steps to address the material breaches and that it has adequate systems, processes and resources in place to ensure compliance with the FMC Act and to effectively perform services under the license”, the FMA stated.

It should be noted that during the two and half year suspension, AxiCorp was permitted to act as a derivatives issuer in respect of a regulated offer of derivatives for the sole purpose of entering into derivatives with existing clients in order to close out any open position(s) AxiCorp has with existing clients.

Axi has been making moves in the global FX industry, having recently launched its copy trading service, which followed the launch of Axi’s new MAM and PAMM platform.

 

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