Advanced Markets Prompted by ASIC to Clarify License Function

The Australian Securities and Investments Commission has been in contact with Advanced Markets concerning changes to its website. According to an announcement made by the Australian regulator, some statements may have implied that ASIC regulates all financial services provided by Advanced Markets. ASIC has indicated in its communique that services that are not provided in Australia are beyond its jurisdiction.

Despite being incorporated in the Cayman Islands, Advanced Markets is also registered as a foreign company under the Australian Corporations Act. The brokerage has an Australian financial services (AFS) license.

The Advanced Markets website states that the company has a physical address in the United States and provides financial services to clients worldwide.

ASIC has highlighted some phrases which could have caused clients outside of Australia to believe that their interests are protected by a regulatory body:

The heading "Advantages of working with an ASIC registered company," followed by claims about ASIC Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term and protection.

Paragraphs on handling Client Money Client Money Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr Read this Term such as, "Client funds are held in accordance with ASIC requirements.”

The requirement for all applicants to state that they qualify as a wholesale client under the Corporations Act, in the account application webpage.

ASIC regulated brokers that provide services outside of Australia and not incorporated in the country are not supervised by the Australian regulator.

ASIC expects that any content or material published by brokers be clear about the reach of the licence.

Commenting in the announcement, ASIC Commissioner Cathie Armour said, “ASIC expects that any content or material published by a foreign company mentioning that the company holds an AFS license to be clear about the reach of the licence. Any limitations of the licence that are not obvious to investors should be clearly disclosed to avoid confusion or misunderstanding.”

Financial service providers must also ensure that they are appropriately licensed in each jurisdiction in which they operate. An AFS licence does not permit AFS licensees to offer financial services in other jurisdictions where approval may be required from the local regulatory authority.