The Australian Financial Complaints Authority (AFCA) has said AGM Markets, whose AFS licence was canceled in November 2018, is still a member of the body.
March 15, 2019. | AtoZ Markets – Online broker AGM Markets remains a member of the AFCA despite the Australian Financial Services (AFS) ban the company suffered late 2018. AGM Markets broker clients are allowed to make requests and can still get support from the authority. According to published information today on their website, clients of the embattled broker can continue to lodge their complaints about the AGM’s conducts and services. The complaint resolution body has promised to respond to clients’ complaints ”as timely and efficiently as possible”.
Why did ASIC revoke AGM’s license?
In November 2018, the Australian Securities and Investments Commission (ASIC) revoked the Australian Financial Services (AFS) license of the online Forex broker AGM Markets accusing them of misleading their clients and engaging in ”unconscionable conduct” among others. The ASIC made the announcement in November 2018 but the licence abolition took effect from December 31, 2018. The watchdog listed the following reasons for why the licence was canceled. AGM:
- provided financial product advice about securities and superannuation interests when it did not hold a license 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.
AFCA cannot guarantee the return of clients funds
Meanwhile, earlier in February 2018, before the licence was officially revoked, the commission warned the public to desist from dealing with AGM Markets Pty Ltd or any of its former representatives OT Markets Ltd and Ozifin Tech Ltd after obtaining interim orders against the three. ASIC also launched civil proceedings against AGM Markets which will be due for hearing in June 2019.
Although AFCA expresses its readiness to respond to complaints from AGM Markets broker clients, the body declared its inability to offer any advice about the status of clients funds or any issues regarding the return of funds or other compensations at the current stage of court proceedings between ASIC and the three companies.
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