ASIC Cancels FXOpen AU's Financial Services License

​Today Fazzaco learned that Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), announced the cancellation of FXOpen AU Pty Ltd's financial services license. This decisive action follows a comprehensive investigation by ASIC that uncovered severe deficiencies in FXOpen AU's ability to manage its financial services and adhere to licensing requirements.

ASIC's investigation revealed multiple shortcomings within FXOpen AU, particularly in its human resources. The regulator noted that the company lacked the necessary qualified personnel to provide financial services effectively and maintain appropriate supervisory arrangements. These deficiencies raised significant concerns about FXOpen AU's competence in overseeing its financial products and compliance with core obligations.

Moreover, ASIC found that FXOpen AU had failed to meet several critical licensing obligations. This included not maintaining the required competence to offer financial products, not adhering to "key person" license conditions, and not following the prescribed financial services laws. The company, which had held its Australian Financial Services (AFS) license since 2011, was authorized to offer Contracts for Difference (CFDs) trading.