ASIC additional license conditions on Advamode


3 September, AtoZForex.com, Lagos – The Australian securities and exchange commission (ASIC) has expressed dissatisfaction over the operational activities of Advamode Financial Pty Ltd. Therefore prompting the imposition of additional conditions on the Australian Financial Services (AFS) license of Advamode.

Advamode is a financial firm with operations across portfolio analysis service, online trading in Contracts for Difference (CFD’s), Commodity Options, Currencies, Interest Rates, Bonds and Stock Indices and more. One of the firm’s departments: Advamode Securities provides full service advisory facilities to investors and traders in the Australian market.

Concerns on Advamode's abilities

The firm describes its responsibility in this aspect thus: “With specialised advisors, Advamode Securities offers the complete package to ensure the best possible research and market experience is being accessed for every client account. With the ability to trade in all products on the ASX, an Advamode Securities Advisor can tailor and execute and investment strategy to suit your share market portfolio or trading needs.” Notwithstanding, Advamode is expected to uphold these standards.

Concerns regarding their ability to effectively carry out their supervisory requirements has prompted the ASIC additional license conditions imposed on the Queensland-based financial services firm, after an ASIC surveillance identified that the enquiry raised serious concerns about the licensee's ability to:

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  • Ensure that financial services were provided efficiently, honestly and fairly
  • Demonstrate adequate financial resources were available to provide financial services and carry out supervisory arrangements
  • Have adequate arrangements for the management of conflicts of interest
  • Demonstrate adequate research and inquiry had been undertaken into financial products.

ASIC will not hesitate

ASIC Deputy Chair Peter Kell said: 'Licensees must have systems in place, to manage conflicts of interest, and have the resources to provide efficient, honest and fair financial services. This goes to the heart of maintaining consumer and investor trust and confidence in the financial services industry. The imposing of licence conditions on Advamode shows that ASIC won't hesitate to act to ensure standards are maintained across the industry.'

The firm has agreed to additional AFS license conditions and is co-operating with the regulators appropriately. It will now be required that a compliance expert, approved by ASIC, will scrutinize Advamode's business. This will cover all policies and processes relevant to each of ASIC's concern. As such, the firm will be required to implement any remedial actions recommended by the compliance expert.

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