ASIC to Withdraw Proposed Suspension of AxiCorp's AFS License
Fazzaco has learned that online trading company AxiCorp Financial Services Pty Ltd, now known as Axi, has settled license issues with the Australian Securities and Investments Commission(ASIC).
Specifically, the watchdog decided to withdraw the proposed suspension of Axi's Australian Financial Services License(AFSL) on 15 February 2021 as the two parties have reached an agreement on the license conditions.
Back to January 2, 2020, ASIC suspended Axi's AFSL for four months for deficiencies and systemic failures in the company's compliance regime. Then Axi applied to the Administrative Appeals Tribunal for review of ASIC’s suspension decision, as well as for a stay of the suspension decision and for confidentiality orders. The Tribunal granted a stay of the suspension pending final review. That is to say, the company were still able to offer financial services throughout the process.
According to the regulator, 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
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