Australia financial regulator ASIC said on Thursday that it has suspended the AFS licence of NSW-based financial services provider Forex Plus Australia Pty Ltd (Forex Plus) for six months, effective from May 5, 2020.

Forex Plus’ licence was suspended after ASIC became aware that Forex Plus had not been providing financial services for some time. Under the Corporations Act, ASIC may suspend or cancel an AFS licence if the licensee has ceased providing financial services.

Forex Plus has also failed to lodge its audited accounts for a number of years. AFS licensees are required by law to lodge their audited accounts annually to demonstrate that they have adequate resources to provide the services covered by their licence and to conduct their business in compliance with law.

ASIC suspended rather than cancelled Forex Plus’ licence because the licensee has indicated that it may recommence providing financial services. Forex Plus will be required to lodge its audited accounts during the suspension period if it intends to recommence providing financial services.

Forex Plus has the right to appeal to the AAT for a review of ASIC’s decision.

The regulator stated that the six-month suspension of Forex Plus’ AFS licence is part of ASIC’s ongoing efforts to improve standards and maintain public confidence in the financial services industry.

Forex Plus has held AFS licence no. 259763 since March 2004. It was authorised to provide advice and make a market for foreign exchange contracts for wholesale clients.