Forex trader removes false statements about subsidiary's AFSL suspension

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A Forex trading provider has removed statements about the suspension of its subsidiary's AFSL after concerns were raised by ASIC.

In August this year, ASIC suspended the AFSL of retail OTC derivative provider Australian Capital Markets Advisory Services (ACMAS) until 30 October 2015 on the grounds that it had ceased to provide financial services in this jurisdiction. ASIC subsequently extended the suspension to 27 November 2015.

Formax International Market Limited, of which ACMAS is a wholly owned subsidiary, previously published a media release on its group website claiming the suspension was part of a normal practice that occurs whenever an enterprise restructures. It further claimed that the suspension would be lifted once the restructure had been finalised.

ASIC said the suspension of a company's AFSL was not a normal practice during a restructure, and said Formax had removed the media release following the regulator raising concerns with the company.

"ASIC undertakes all action for good reason. It is important that industry and investors understand those reasons. In this case we were concerned to discover an overseas parent commenting in a way that misrepresented the action ASIC had taken and was likely to mislead investors," ASIC commissioner Cathie Armour said.