The Australian Securities and Investments Commission (ASIC) took action against Probis Financial Services Pty Ltd today (Monday), suspending its Australian financial services (AFS) license. This move came after Probis opted for voluntary administration in mid-July.
ASIC Suspends License of FX/CFDs Broker
Probis, placed under voluntary administration on 17 July 2023, was suspended by ASIC shortly after. Ensuring consumer protection, ASIC's stipulation mandates that Probis will remain affiliated with the Australian Financial Complaints Authority (AFCA). Furthermore, compensatory measures for retail clients should be intact until October 2023.
Until recently, Probis was an Australian investment company that offered access to margin FX/CFD trading and asset management. However, it declared bankruptcy a few weeks ago. The quartet of Richard Albarran, Brent Kijurina, Cameron Shaw, and Aaron Dominish from Hall Chadwick were handed the reins as the voluntary administrators for Probis due to the insolvency proceedings.
Before this suspension, Probis was empowered with an AFS licence which granted the company diverse financial privileges. The company was able, among other things, to offer general financial advice, handle specific financial commodities, or engage in foreign exchange contracts and derivatives market-making. In admission, the AFS license authorized the company to administer a registered investment scheme dedicated to financial assets and extend custodial and depository utilities to both retail and wholesale clientele.
While currently suspended, Probis is not entirely cornered. They still retain the right to challenge ASIC's verdict by reaching out to the Administrative Appeals Tribunal for reconsideration.
Recent Regulatory Actions
The Australian regulatory body recently announced removing the interim stop order placed on Mitrade Global Pty Ltd, a contracts for differences (CFDs) broker. This temporary order was first imposed on 22 June due to design and distribution obligations (DDO) violations.
In the meantime, the regulator took legal action against the Australian branch of multi-asset broker eToro, accusing it of lapses in its CFDs practices. ASIC revealed last week that eToro Aus Capital Limited had violated DDOs and failed in its license obligation to operate "efficiently, honestly, and fairly."
Earlier in July, Openmarkets Australia Limited, a retail broker, faced a hefty penalty of AUD 4.5 million for numerous breaches of market integrity rules. Furthermore, ASIC has canceled the AFS license granted to APBG Capital Pty Ltd. This license allowed APBG Capital to engage in managed investment scheme interests and offer financial counsel to wholesale clients.
