ASIC has temporarily suspended the license of the forex broker Direct FX
The Australian Securities & Investment Commission (ASIC) has temporarily suspended the license of the forex broker Direct FX Trading Pty Ltd. due to company’s failure to maintain some of its duties.
DirectFX is an Australian broker, which provides trading in a variety of assets and operates on MT4 and CQG platforms. The company was established in 2006 and considered to be one of the biggest forex trading companies in Australia.
According to the ASIC, the broker will not be able to perform trading activities because of the license suspension. The suspension will last from ten weeks and up to six months. This period directly depend on whether the company shows the ability to comply with the requirements of the regulator.
ASIC has been reviewing Direct FX’s compliance with its financial duties since October 2017 and it resulted to the suspension. One of the regulator’s requirements was for the broker to provide an audit report by February 9, 2018, but the report was provided only in the beginning of April.
In the process of the investigation, ASIC has discovered that the broker company has also failed to maintain the Net Tangible Asset (NTA) requirements. One more reason for the suspension measure, is that the Direct FX hasn’t replaced key persons mentioned on its license.
ASIC stated that Direct FX won’t be allowed to provide any financial services until key arrangements are adequately addressed and the broker demonstrates the compliance with all the requirements attached to its license.