ASIC to Wind Up 95 Financial Services Firms: Multiple CFDs Brokers Named

The Australian Securities and Investments Commission (ASIC) has moved to court to wind up 95 local financial services companies, some of which offered forex and contracts for differences (CFDs) trading services.

CFDs Brokers Made It to the List

The industry-specific names include Aximtrade, Vortex Trading, Ridder Trader, and a few others. Notably, none of these companies now offer trading services under the Australian Financial Services (AFS) license. In fact, most shuttered firms have entirely closed, with exceptions like Aximtrader, which still offers services outside Australia under a Saint Vincent and the Grenadines license.

In the notice published today (Tuesday), the regulator highlighted that it “lacks confidence in the conduct and management of the affairs of the companies,” adding that it “is also concerned that some of the companies are the subject of complaints and appear to be associated with websites which may have facilitated scam activity.”

The court has also appointed joint and provisional liquidators for the 95 companies.

“The matter is subject to orders relating to confidentiality,” ASIC added. “A case management hearing is scheduled for 5 December 2024, with a view to setting the hearing for final relief as soon as possible thereafter. Any defendant or interested party seeking to be heard on the application for final relief must file their evidence by 25 November 2024.”

ASIC Against Scams

ASIC monitors and regulates the financial services industry in Australia. Companies operating locally need to be licensed by the agency to operate within the country.

Recently, the regulatory agency has become vigilant against the rampant scams using financial services platforms. It initiated a campaign against fraudulent platforms and blocked over 7,300 phishing and investment scam websites since July 2023.

In its fight against phishing and investment scam websites, the regulator uses the services of third-party technology providers. Last September, it even issued a request for tender (RFT) for a third-party tech provider contract that could last up to five years.

Meanwhile, the regulator is also taking action against non-compliant licensed financial service providers. It cancelled the licenses of Prospero Markets and FXOpen, two platforms that previously offered CFDs contracts.