Australian Regulator Imposes New Restrictions on Learn To Trade’s CFD AFS Licence

The Australian Securities and Investments Commission (ASIC) has added new conditions to the Australian Financial Services (AFS) license of Learn To Trade Pty Ltd (LTT). This action follows LTT's non-compliance with financial services laws.

LTT offers online coaching and training for retail and wholesale clients in margin foreign exchange contracts and contracts for difference.

ASIC expressed concerns regarding LTT's failure to meet multiple AFS licensee obligations. These include timely lodgement of financial documents and notifications required by financial services law and its AFS license conditions.

Specifically, LTT did not lodge its annual financial statement and audit report within the mandated timeframe for the financial years ending December 31, 2023, and December 31, 2024. The company has also been late in lodging these reports on multiple occasions since 2012. ASIC concluded that LTT would likely continue breaching its obligations.

LTT additionally failed to notify ASIC of a new auditor appointment.

Compliance with financial reporting and notification obligations allows ASIC to monitor a licensee's financial health, solvency, and adherence to ongoing financial requirements. Auditor notifications update the AFS licensee register, informing stakeholders of the responsible auditor.

ASIC has mandated an additional condition on LTT's AFS license. The company must appoint an independent compliance consultant. This consultant will review LTT's procedures for lodging auditor's reports and financial statements within prescribed timeframes.

The consultant will also assess LTT's frameworks for monitoring compliance with financial services laws, identifying, and reporting breaches, and other relevant policies.

Two reports on these matters must be submitted to ASIC. This will enable ASIC to determine LTT's likelihood of future compliance and whether further action is necessary.