Clients of AGM Markets can continue to file complaints with AFCA
The company, whose AFS license was cancelled by ASIC in November 2018, remains a member of the Australian Financial Complaints Authority.
Although the Australian Securities & Investments Commission (ASIC) cancelled the Australian Financial Services Licence (422662) of brokerage AGM Markets Pty Ltd in November 2018, the clients of the firm can still request support from the Australian Financial Complaints Authority (AFCA). This is possible because AGM is still a member of AFCA.
The external dispute resolution body today published information for AGM’s clients. While AGM remains a current member of AFCA, consumers can continue to lodge complaints about AGM’s conduct and services with AFCA. AFCA will continue to consider and handle complaints against the financial firm as timely and efficiently as possible.
The cancellation of AGM’s license followed an ASIC investigation which demonstrated that AGM’s financial services operations involved core elements of unconscionability and unmanaged conflicts of interest and followed a business model that disregarded key conduct requirements.
Specifically, the AFS licence was cancelled after ASIC found AGM:
- provided financial product advice about securities and superannuation interests when it did not hold a licence to do so;
- engaged in conduct by making representations to clients that were misleading or deceptive or was likely to mislead or deceive;
- did not have available adequate human resources to carry out supervisory arrangements and demonstrated a poor attitude and commitment to its, and its representatives, compliance with financial services laws;
- engaged in conduct that was unconscionable;
- did not have in place adequate arrangements for the management of conflicts of interests;
- did not do all things necessary to ensure that the financial services covered by the licence were provided efficiently and fairly;
- does not understand the scope of s911A; and
- has not acknowledged critical non-compliance.
Later in November 2018, ASIC announced a ban on Yossef Ashkenazi, also known as Yossi Ashkenazi, from providing financial services for a period of eight years.
ASIC also has on foot a Federal Court application to appoint a liquidator to AGM and its two former representatives OT Markets Pty Ltd (OT Markets) and Ozifin Tech Pty Ltd (Ozifin Tech), for the companies to be wound up. Those Court proceedings are ongoing.
ASIC has also obtained freezing orders against relevant assets and bank accounts of AGM, OT Markets and Ozifin Tech. This means certain bank accounts are now frozen and the companies are unable to sell or otherwise deal with the property without ASIC’s consent or Court order.
At this stage, given the current Federal Court proceedings between ASIC, AGM, OT Markets and Ozifin Tech, AFCA is unable to advise about the ongoing status of clients’ funds, return of funds to clients or other compensation that may be payable.
