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AxiCorp Appeals for License Stay in the AU

Earlier this year, the Australian Securities and Investments Commission suspended AxiCorp Financial Services Pty Ltd. The over-the-counter derivatives issuer just applied to the Administrative Appeals Tribunal to review the suspension.

The Tribunal allowed a stay for the decision while the final review is pending. During the investigation, ASIC is allowed to continue operations at least until it wraps up.

However, the organization declined requests to allow ASIC confidentiality orders.

AxiCorp offers margin foreign exchange and contracts for differences to retail and wholesale clients. It trades under AxiForex, AxiPrime, and AxiTrader.

Commenting on the predicament at hand, AxiCorp said the company ensures appropriate compliance to meet its obligations. This was with reference to the size and complexity of the business.

The broker commissioned an independent review by a highly experienced regulatory compliance expert for ASIC’s concerns. In return, the reports showed positive observations about the broker’s operation while highlighting areas it needs to improve.

Furthermore, AxiCorp claims they completed the work required and took steps to address opportunities for further improvement.

Top-tier watchdogs like the UK Financial Conduct Authority and the Dubai Financial Services Authority still regulate the broker.

ASIC in Australian Innovation

ASIC suspended AxiCorp’s license for failing to comply with financial services laws. This includes compliance with its derivative transaction rules, money reporting rules and lodging financial statements by the due date.

The Aussie watchdog claims this breaches Condition 3 of its license. Said condition ensures that AxiCorp establishes and maintains practices that comply with provisions of the regulator’s laws.

According to the watchdog, their suspension was part of their efforts to improve standards in Australia’s retail OTC derivatives sector.

CEO of the Australian broker Pepperstone said these measures could prove that Australia was moving away from a key advantage. Tamas Szabo, namely, called the country a “principle-based regulatory environment” that supports innovation.

He said that if product intervention measures were used properly, it shouldn’t “affect innovation.”



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