The Australian Securities and Investments Commission (ASIC) announced on Wednesday that the country's Administrative Appeals Tribunal (AAT) had upheld the decision for the cancellation of the license of Olive Financial Markets Pty Ltd (Olive).

AAT Upholds Olive's AFS License Cancellation

ASIC originally canceled Olive's Australia Financial Services (AFS) license on 16 March 2020, and the company quickly applied to the AAT on 17 March, in which it asked for a review and stay of ASIC's decision to cancel the license. The AAT also granted a stay of ASIC's decision on 23 April 2020 but restricted the company from onboarding new clients. The latest order of AAT has now sealed ASIC's decision.

Olive Financial Markets is an Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term provider of securities and derivatives, including equities, options, contracts for difference, futures, and margin FX. Additionally, the firm offers managed discretionary accounts and financial planning services among other services.

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Olive Financial Markets Violated the Aussie License Rules

In the latest announcement, ASIC detailed that the AAT found out about Olive's contraventions after a hearing in early 2021. The company violated regulations in many areas, including engaging in unconscionable conduct, prohibited hawking, misleading or deceptive conduct, and providing false or misleading statements. It even failed to provide appropriate advice and did not act in the clients' best interests.

"The AAT stated these 'problems went undetected – or were ignored – over a long period partly because of serious shortcomings in the compliance arrangements and complaints handling process' and that this 'bad behaviour went on under the noses of senior managers who manifestly failed to supervise those for whom they were responsible'," ASIC stated.

Olive made improvements to its business following ASIC's original move. However, the AAT believes that the company is unlikely to contravene its obligations in the future and found ASIC's decision appropriate.

Apart from cancelling Olive's AFS license, the regulator banned the company's former director, Scott John Morrison, from providing financial services for seven years, which became effective on 3 April 2020. Unlike the company, Morrison did not appeal the regulator's decision.