Australia’s Securities and Investments Commission (ASIC) announced today that it has suspended the financial services provider license of Forex Plus Australia Pty Ltd. The regulator indicated that it is “suspended rather than canceled Forex Plus’ license because the licensee has indicated that it may recommence providing financial services. Forex Plus will be required to lodge its audited accounts during the suspension period if it intends to recommence providing financial services.”
Forex Plus’s license was suspended after ASIC became aware that Forex Plus had not been providing financial services for some time. Under the Corporations Act, ASIC may suspend or cancel an AFS license if the licensee has ceased providing financial services.
In essence, the broker did not file necessary regular reports with the regulator that is required of licensed firms. It remains to be seen if this was due to disruptions caused by the Covid-19 pandemic or rather some other irregularities since Forex Plus has held AFS license no. 259763 since March 10, 2004. It was authorized to provide advice and make a market for Forex contracts for wholesale clients.