Australian Securities and Investments Commission (ASIC), announced today that it has imposed additional conditions on the Australian financial services (AFS) license of AxiCorp to ensure adequate compliance arrangements for the company’s OTC derivatives business.
According to the official announcement, AxiCorp must appoint an independent expert under the new conditions to review and assess the company’s compliance arrangements. Additionally, the broker is required to maintain a minimum of three equivalent full-time compliance staff until 31 December 2022.
AxiCorp recently settled Australian financial services (AFS) license issues with ASIC and mentioned that the authority has withdrawn the proposed suspension of Axi’s AFS license. Rajesh Yohannan, Chief Executive Officer at AxiCorp added that the company is looking forward to developing a long and positive relationship with ASIC.
“AxiCorp is also required to provide ASIC with an attestation from a senior executive within AxiCorp. The senior executive must confirm they are satisfied that AxiCorp has undertaken all necessary remedial actions and that AxiCorp has in place adequate compliance measures to ensure that it and its representatives comply with financial services laws. If the executive attestation is not provided by the time required, AxiCorp is required to take all necessary steps to cease onboarding new customers and not charge customers commission or other fees for financial services provided by AxiCorp in Australia for as long as the attestation remains outstanding,” ASIC mentioned in the official announcement.
All the companies offering financial services in Australia are required to have an AFS license. In an announcement earlier this month, AxiCorp mentioned that the company provided uninterrupted services to its clients under the ASIC entity during the entire process because the proposed suspension was never put into effect.
“Following the imposition of the additional license conditions, ASIC and AxiCorp filed proposed consent orders with the Tribunal, setting aside the decision to suspend AxiCorp’s AFS license. On 9 March 2021 the Tribunal granted the orders and set aside the suspension decision,” ASIC added.