Australian Securities and Investments Commission (ASIC), has recently taken drastic and necessary action against another FX entity. This time it is AGM Markets Pty., ASIC has suspended the license of AGM Markets Pty due to some issues concerning the company`s name, corporate structure and members.
ASIC has no doubt been demonstrating it commitment to properly scrutinise retail FX firms operating under its jurisdiction. In doing this, the regulators have implemented more advanced surveillance systems, including a distinct reluctance to process new AFS licenses. The suspension of AGM Markets Pty’s AFS license is another evidence of ASIC’s ongoing crackdown on the margin FX industry.
AGM Markets stopped operations in financial business since May 2014, but has now decided to recommence operation again by the end of April 2014, having made several changes to the company`s name and corporate structure. Such a development allows ASIC to cease an AFS license, when financial services businesses stops its operations. This has prompted the suspension of AGM’s licence for six months, beginning from 26 March 2015.
As AGM Markets receives license suspension from ASIC, ASIC Commissioner Greg Tanzer commented thus: “Participants in the margin FX industry can be exposed to turmoil in currency markets and ASIC wants to ensure licensees wanting to be part of this sector are in a position to meet their AFS licence obligations. If businesses can’t demonstrate this, ASIC can cancel licences.”