AxiCorp seeks review of ASIC’s decision for license suspension

Maria Nikolova

The Tribunal has granted a stay of the suspension pending final review, meaning that AxiCorp can continue to provide financial services until a final decision by the Tribunal is made.

The Australian Securities & Investments Commission (ASIC) today announces that online trading company AxiCorp operating as AxiForex, AxiPrime and AxiTrader, is seeking a review of ASIC’s decision to suspend its license.

On January 2, 2020, ASIC suspended the Australian financial services (AFS) licence of AxiCorp for four months. On the same day, AxiCorp applied to the Administrative Appeals Tribunal for review of ASIC’s suspension decision, as well as for a stay of the suspension decision and for confidentiality orders.

The Tribunal has granted a stay of the suspension pending final review, meaning that AxiCorp can still provide financial services until a final decision by the Tribunal is made. The Tribunal denied AxiCorp’s request for confidentiality orders.

AxiCorp’s licence was suspended after ASIC found that AxiCorp failed to comply with financial services laws, namely the requirements to:

  • pay client money into an account with an Australian authorised deposit-taking institution
  • lodge product disclosure statement (PDS) in-use notices with ASIC
  • comply with the ASIC derivative transaction rules
  • comply with client money reporting rules; and
  • lodge financial statements with ASIC by the due date.

AxiCorp was also found by ASIC to have breached Condition 3 of its licence which requires AxiCorp to establish and maintain compliance measures that ensure, as far as is reasonably practicable, that the licensee complies with the provisions of the financial services laws.

According to the regulator, AxiCorp is likely to contravene its obligations under s912A of the Corporations Act as a result of deficiencies and systemic failures in AxiCorp’s compliance regime.

Read this next

Industry News

Playtech to close Finalto sale to Gopher in two weeks

Playtech, the London-listed gambling software developer, today said it expects to close the divesting of its financial trading division Finalto by mid July 2022.

Retail FX

eToro valuation halved as SPAC merger deadline expires

The deadline for the completion of the SPAC merger of eToro had passed yesterday, June 30, and the Israeli broker apparently canceled the deal with Betsy Cohen-backed blank-check firm.

Institutional FX

FXSpotStream reports second best figure for monthly volumes

Trading volumes on institutional FX platforms surged in June after fears over the impact of Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Retail FX

Vantage expands MT5 offering with access to new stocks

ASIC-regulated foreign exchange brokerage Vantage has expanded its service offering and trading products by incorporating new markets, namely 14 exchange-based stocks on MetaTrader 5.

Digital Assets

CFTC charges $1.7 billion Bitcoin scam, largest to date

Mirror Trading accepted at least 29,421 Bitcoin from approximately 23,000 investors from the United States and even more throughout the world.

Retail FX

Spotware Systems upgrades cTrader Desktop to version 4.3

Spotware Systems, a technology provider for the electronic trading industry, has launched an updated version of its cTrader Desktop, which adds new functionality to join a roster of advanced trading capabilities.

Digital Assets

OKX launches Block Trading for tighter pricing

With Block Trading, users can integrate spot and derivatives trades on the same platform and trade multiple currencies in a single trade. The service supports trading of perpetual swap, futures, and option contracts with popular altcoins as the underlying.

Industry News

Interactive Brokers pays $1 million to settle with CFTC

Interactive Brokers overcharged its customers a total of $710,828.14.

Metaverse Gaming NFT

DappRadar launches cross-chain token staking

The launch of the cross-chain token staking mechanism by DappRadar comes under a partnership with LayerZero protocol, which enables smart contracts to communicate across different chains.

<