AxiCorp Settles With ASIC Over AFS License Issues

AxiCorp has settled with the ASIC after confirming that the Australian regulator has withdrawn the proposed suspension of Axi’s AFS license.

March 1, 2021 | AtoZ MarketsAxiCorp, an Australian retail FX and CFD brokerage firm, announced on Monday that the Australian Securities and Investments Commission (ASIC) has withdrawn the proposed suspension of Axi’s Australian Financial Services License (AFSL) on February 15, 2021.

AxiCorp reaches settlement with ASIC

According to the official announcement, the broker provided uninterrupted services to its clients under the ASIC entity during the entire process because the proposed suspension was never put into effect. Axi mentioned that both parties have agreed on license conditions to ensure and maintain a strong compliance culture in the broker.

Commenting on the recent announcement, Rajesh Yohannan, Chief Executive Officer at AxiCorp, said:

“I am pleased we’ve been able to work with ASIC to come to a settlement which we believe is a fair response to ASIC’s concerns. I’m also very proud of the ownership and commitment from the senior leadership team and the level of all employee engagement in strengthening our compliance culture at Axi. We look forward to a long and positive relationship with ASIC and see Australia as a key growth market for Axi as we expand our products and services.”

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Notably, AxiCorp operates under the business names Axi, AxiForex, and AxiPrime. Moreover, the Australian-based firm operates a business that offers margin forex. It also offers contracts for differences (CFDs) to retail and wholesale clients.

Related: Axitrader Sponsors Manchester City and Rebrands as Axi

Axi takes compliance matters extremely seriously

In the announcement, AxiCorp mentioned that the company will continue to work with the ASIC to strengthen the overall compliance framework. The broker also highlighted the importance of compliance-related matters.

“Axi takes all risk and compliance matters extremely seriously and has made a significant investment in its Australian compliance function and practices to ensure it is appropriate to meet our obligations with reference to the size and complexity of the business,” Axi mentioned in the announcement.

AtoZ Markets earlier reported that ASIC suspended AxiCorp’s AFS license after the regulator found that the company failed to comply with financial services laws, namely the requirements to:

  • pay client money into an account with an Australian authorized deposit-taking institution
  • lodge product disclosure statement (PDS) in-use notices with ASIC
  • comply with the ASIC derivative transaction rules
  • comply with client money reporting rules; and
  • lodge financial statements with ASIC by the due date.

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