The Australian Securities and Investments Commission (ASIC) announced on Wednesday that it would revoke the Australian Financial Services (AFS) license of over-the-counter (OTC) derivatives issuer Prospero Markets Ltd. (in liquidation) from 25 September 2024. .
Prospero’s AFS license was suspended in December 2023 due to the company’s failure to submit audited financial accounts for 2023.
Following an application by ASIC, the Federal Court ordered Mr Prospero to be wound up and a liquidator appointed in April 2024.
ASIC said that under the Corporations Act it has the power to suspend or revoke an AFS license if the licensee goes into liquidation or ceases carrying on financial services business.
However, ASIC requires Prospero to remain a member of the Australian Financial Complaints Authority (AFCA) until 25 March 2026, maintain arrangements to indemnify retail customers and comply with the ASIC Customer Financial Reporting Regulations. I specified.
Prospero can appeal ASIC’s decision to revoke its AFS license to the Administrative Appeals Tribunal.
The investigation into Prospero began in November 2023 following the Australian Federal Police’s Operation Avarus Nightwolf, which resulted in the indictment of former Prospero directors and responsible managers on money laundering charges.
https://www.leaprate.com/financial-services/rules-and-regulation/asic-cancels-prospero-markets-afs-license/
