20 May, AtoZForex, Vilnius – Today, the Australian Securities and Investment Commission (ASIC) reported that the license of an Australian Financial Services (AFS) got suspended. The AFS in question is Marigold Falconer International Limited (Marigold Falconer) with the AFS license 244315. As Marigold Falconer AFS license got suspended by 11 days, the company has time until the May 31st, 2016 to remedy the case.
The AFS is active in various fields, including securities, derivatives, investment banking, personal trading advice and more. However, it's core business involves being an Introducing Broker (IB) for Marigold International Bullion Dealers Limited (MIBD). A Hong Kong-based dealer of gold bullion. MIBD is licensed and a member of the Gold and Silver Exchange. As an IB, Marigold Falconer provides its clients access to gold bullion trading through MIBD's trading platform. Moreover, Marigold Falconer offers the latest research and trading-based support services to its clients.
Why is Marigold Falconer AFS license suspended?
The regulator found out that Marigold Falconer did not renew its professional indemnity insurance. The previous policy of Marigold Falconer got expired at the end of February this year. The indemnity insurance is required for every investment firm. Basically, it covers the company or any of its representatives, in case a financial services law, is violated. Hence, Marigold Falconer's mistake of not being able to renew the policy on time has been punished with a suspension.
Moreover, ASIC noted that the company did not lodge its audited financial statements of 2015. Whereas the deadline required under the Corporations Act was set on October 31, 2015. The AFS license that allowed Marigold Falconer to provide its investment services has therefore been suspended by ASIC till May 31st.
Ostrava Equities' tie with Marigold Falconer
Relating to the case, ASIC is currently taking action in the Federal Court against Ostrava Equities Pty Ltd, a former authorized representative of Marigold Falconer. At the moment, Ostrava Equities is not active, as the firm ceased its operations last October. ASIC alleged that two individuals of Ostrava Equities violated various corporation legislations. Some of these misconducts involved illicit charges made to clients on self-directed retirement accounts and unauthorized client withdrawals.
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