27 August, 2015 | AtoZ Forex – After ASIC’s discovery of misleading statements on the websites of British Virgin Island company FIBO Group Limited (FIBO) and a Cyprus company, Trading Point of Financial Instruments Limited (also known by the trading name XM.com) (Trading Point) these firms have agreed to end provision of unlicensed financial services to Australians.
According to ASIC’s uncovering, both firms have been offering their services to Australian clients, even though neither of them is adequately authorized to do so. Hence, both FIBO group Ltd and XM quit Australian operations. On top of being unauthorised, they have both been found to advertise their services on their respective group websites, with the following details:
- Trading Point of Financial Instruments Pty Ltd who obtained a licence in December 2013; and
- FIBO (Australia) Pty Ltd who obtained a licence in September 2013.
ASIC received complaints from investors
Speaking on the matter, ASIC Commissioner Cathie Armour said, ‘ASIC has received a number of complaints from investors who have mistakenly believed they are being provided services by an Australian financial services licensee when in reality the agreements are with a different company.
‘Often these investors have signed up via a website run by a group of entities that heavily promotes one company within the group as having an AFS licence and being regulated in Australia. What makes it even more disappointing in these cases is the Australian entities’ services were being advertised when they were not even in a position to commence their businesses and with many of the usual regulatory protections not being in place’
XM and FIBO group informed ASIC that they had not commenced providing financial services and therefore were not required to meet a number of obligations, including complying with the $1 million minimum net tangible asset requirement.
Trading Point and FIBO remove references to Australian entities
The regulators concluded by saying: “AFS licensees advertising and offering their services on websites before they are able to commence providing those services could be found to have engaged in misleading and deceptive conduct. Trading Point and FIBO have agreed to remove references to the Australian entities and Australian regulation from their group websites. These types of references should not be used until the respective Australian entities are ready to start providing financial services under their AFS licenses.”