ASIC clamps down on another forex trader

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ASIC has taken aim at another forex trader, highlighting what it said were misleading statements on its website.

ASIC announced that Boca Global Financial Group Pty Ltd had agreed to remove statements on its website suggesting the company was ASIC regulated or authorised to provide financial services in Australia. The regulator said the company was neither authorised to provide financial services in Ausstralia under an AFSL, nor was it exempt from holding an AFSL.

ASIC said Boca was previously appointed as an authorised representative of Finsa on 23 January 2015, but that this appointment ceased on 29 September 2015.

"Even at the time Boca was a corporate authorised representative of Finsa, it would not have been able to lawfully provide some of the financial services in Australia advertised on its website. As an authorised representative Boca can only be authorised to provide a specified financial service 'on behalf of' a licensee, and not on its own behalf," ASIC said.

ASIC commissioner Cathie Armour said the case was "another example" of a retail margin forex trader representing that it was regulated by ASIC.

"Industry participants need to be clear on the limitations of using a corporate authorised representative business model. Authorised representatives that purport to issue financial products on their own behalf will expose themselves to regulatory action for unlicensed conduct," Armour said.

Armour said authorised representatives who falsely marketed themselves as product issuers would face regulatory action. She warned that licensees that allowed their authorised representatives to act this way could also risk regulatory action.