15 October, AtoZForex.com, Amsterdam — Today, ASIC declared publicly that it has cancelled the Australian financial service license, commonly abbreviated as AFSL, of the LSG Group Pty Limited. The decision for such a ruling took place, after the investigation of ASIC showed several violations of the company.
- NZ Global Financial Trading Pty Ltd
- Easy Capital Global Pty Ltd
- AIFA Global Pty Ltd
The AFSL license of the broker authorized them to offer and deal with financial products, as well as to make a market in derivatives for wholesale and retail clients. Yet, the ASIC delegate cancelled the firm’s license, based on the grounds outlined below.
Why ASIC cancelled the AFSL license
For the full hearing results please visit ASIC, the following points are solely highlights:
1. Failed to comply with the conditions on its license and financial services laws, including failing to lodge financial statements, auditors reports, significant breach reports, and to notify ASIC of changes of control.
2. Made misleading or deceptive representations on its Chinese as well as Australian website, its Financial Services Guide and PDS concerning products it offered.
3. Failed to do all things necessary to conduct financial services in an efficient, honest and fair manner in relation to a deposit of US$100,000 received from an overseas client.
Warning to all AFSL holders
Failing to comply with the above these regulations, it is logical that ASIC cancelled LSG Group license. ASIC’s press release reports that the AFSL license of LSG Group, under number 418008, already got annulled back on the 30th of September.
ASIC Commissioner Greg Tanzer set the case as an example for other firms, and warns publicly that: ‘It is vital that AFSL holders comply with their reporting requirements to ensure that creditors and investors who use financial reports, have the proper information to make informed decisions.’
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