The Australian Securities and Investments Commission (ASIC) announced that it had cancelled the Australian Financial Services (AFS) licence from Olive Financial Markets Pty Ltd.
05 May, 2020 | AtoZ Markets – Olive Financial Markets is a provider of online trading in securities and derivatives, including stocks, options, CFD, futures and FX. The company also offers managed discretionary accounts and financial planning services, among others.
ASIC cancelled the licence following concerns that Olive was not meeting its obligations as an AFS licencee and was, likely to violate its obligations in the future. ASIC also announced several developments regarding its actions against Olive Financial Markets Pty Ltd. Note that, between 2013 and 2018, Olive operated the following companies:
- Managed discretionary account (MDA) service provided by authorized representatives of Olive, namely Share Express Pty Ltd, Markets Pty Ltd and Investor Center Australia Pty Ltd,
- Superannuation rollover business carried out by authorized representatives of Olive, Camori Pty Ltd, Ricarmo Pty Ltd and Paradise Financial Group Pty Ltd.
Olive Appealed the Cancellation
On March 17, 2020, Olive applied to the AAT to review and suspend the ASIC decision to cancel the AFS licence. On April 23, the AAT granted a stay of the ASIC decision to cancel the AFS licence. It is until the AAT reconsider the ASIC decision, under certain conditions, including:
- Do not accept new clients while the stay is in effect
- Olive informs its current customers of the ASIC decision to cancel its AFS licence, the AAT’s stay of the cancellation pending the review of the ASIC decision. Olive can continue providing financial services until the exam is determined.
According to the statement released today, in the initial ASIC decision, the regulator also cancelled the AFS licence after finding that Olive:
- Failed to guarantee that it provided financial services in an efficient, honest and fair manner;
- Engaged in unreasonable behaviour;
- Engaged in deceptive or deceptive conduct and made false or misleading statements;
- Violated the hawking prohibitions by making unsolicited calls to potential customers;
- Did not take the necessary steps to ensure that its representatives comply with their obligation to act in the best interests of clients. Their obligation not to make false or misleading statements or to engage in deceptive or deceptive behaviour;
- Has not complied with the obligation to ensure that its representatives are sufficiently trained and competent;
- Did not have a compliant dispute settlement system.
ASIC Bans Former Olive Financial Markets Director
The authority also decided to ban Scott John Morrison, the former director of Olive. He can’t provide financial services for seven years, effective April 3, 2020. ASIC also found that Mr. Morrison:
- Did not act in the best interest of Olive’s customers;
- Is not competent to provide advice on financial products;
- Is likely to violate a law on financial services; and
- Has been implicated in certain offences committed by Olive when he engaged in deceptive or deceptive behaviour. He also made false or misleading statements.
Think we missed something? Let us know in the comment section below.