ASIC Revokes AGM Markets’ Licence For Unethical Conduct

November 09, 2018 | AtoZ Markets

The Australian Securities and Investments Commission (ASIC) has announced today, that it has cancelled the Australian Financial Services (AFS) license of a retail online Forex broker, AGM Markets Pty Ltd.

After investigations, the ASIC has found the financial services business of a retail broker, AGM Markets, involved in core elements of unconscionability and unmanaged conflicts of interest and has followed business model that disregarded key conduct requirement. Therefore, the Australia financial watchdog has cancelled the financial services licence of the brokerage firm. The regulatory body has listed eight reasons for taking this step against the financial firm.

8 Reasons why ASIC Cancelled AGM Markets’ Licence

Specifically, their licence was revoked after ASIC found that AGM Markets:

  • provided financial product advice about securities and superannuation interests when it did not hold the licence to do so
  • engaged in conduct by making representations of clients that were misleading or was likely to mislead or deceive.
  • did not have available human resources to carry out supervisory arrangements and demonstrated a poor attitude and commitment to its, and its representatives, compliance with financial services law.
  • engaged in conduct that was unconscionable.
  • did not have in place, adequate arrangements for the mismanagement of conflicts of interest.
  • 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.

ASIC has also launched civil proceedings against AGM markets which was listed for hearing on 24th June 2019. However, the broker’s licence will continue until 31st December 2018 so as to reduce the impact of the licence cancellation on AGM clients. This is done to ensure that AGM maintains its membership of an external dispute resolution scheme and continues to have a sufficient indemnity insurance cover until this time.

Meanwhile, AGM has the right to appeal to the administrative appeals tribunal to review ASIC’s decision.

Think we missed something? Please share with us in the comment box.

    Share Your Opinion, Write a Comment