FNG Exclusive… FNG has learned that Retail FX brokerage group AxiCorp Financial Services Pty Ltd – which recently rebranded from AxiTrader to just Axi – has worked with Australian regulator ASIC to agree license conditions, as the regulator has withdrawn the proposed suspension of Axi’s AFS license. Axi confirmed that on February 15, 2021 ASIC agreed to withdraw the proposed suspension of Axi’s Australian Financial Services License.
In early 2020 ASIC announced that it was going to suspend Axi’s AFS license for four months, but that Axi had applied to the Administrative Appeals Tribunal for review of ASIC’s suspension decision, as well as for a stay of the suspension decision. The Tribunal granted a stay of the suspension pending final review.
At the time, ASIC stated that it was seeking a (temporary) suspension of Axi’s license after the regulator said it found that Axi failed to comply with financial services laws, namely the requirements to:
- pay client money into an account with an Australian authorised deposit-taking institution,
- lodge product disclosure statement (PDS) in-use notices with ASIC,
- comply with the ASIC derivative transaction rules,
- comply with client money reporting rules; and
- lodge financial statements with ASIC by the due date.
Axi was also found by ASIC to have breached Condition 3 of its license, which required Axi to establish and maintain compliance measures that ensure, as far as is reasonably practicable, that the licensee complies with the provisions of the financial services laws. ASIC also found that Axi is likely to contravene its obligations under s912A of the Corporations Act as a result of deficiencies and systemic failures in the company’s compliance regime.
Back to the present…
Axi has informed us that the suspension was never put into effect, and the company said it has been able to provide uninterrupted service to its ASIC entity clients throughout the process.
As far as the agreement with ASIC, Axi said that license conditions have been agreed by both parties. Those conditions will ensure Axi maintains its strong compliance culture into the future. The company noted that it is pleased with the outcome and will continue to work with ASIC to ensure they have confidence in the company’s compliance framework.
Rajesh Yohannan, CEO of Axi said:
“I am pleased we’ve been able to work with ASIC to come to a settlement which we believe is a fair response to ASIC’s concerns. I’m also very proud of the ownership and commitment from the senior leadership team and the level of all employee engagement in strengthening our compliance culture at Axi.
We look forward to a long and positive relationship with ASIC and see Australia as a key growth market for Axi as we expand our products and services.”