Australian Authorities Crack Down on Unregulated Forex and CFDs Brokers
The financial regulator in the land down under, the Australian Securities and Investments Commission (ASIC) has started a crackdown on unregulated brokers. The authority posted on its website an official warning about three companies that have been operating illegally: AGM Markets, OT Markets, and Ozifin.
The activities of the firms on Australian territory have been unsanctioned by authorities. After some red flags have been raised by consumers, the financial services regulation authority launched an investigation. The effort resulted in a court order that puts restrictions on the operations of the firms in Australia.
The Federal Court issued orders that restrain the entities from removing their assets from Australia. The companies are also barred from disposing of their property, with their assets frozen in two specified bank accounts.
The crackdown also includes two individuals which are not named by the ASIC. They are involved with AGM Markets and OT Markets and are barred from leaving Australia without the consent of the Federal Court.
Aggressive Sales Operations
Aside from AGM Markets, the other entities mentioned by ASIC have been operating the OT Capital brands (otcapital.com, otcapital.net.au, and otcapital.info) and tradefinancial.com.au.
The ASIC is concerned that these entities have been offering personal advice to retail investors. The firms have not been licensed by the AFSL license of AGM Markets. The entities are seen as engaging misleading and deceptive conduct.
The ASIC has issued a warning that potential investors are likely to suffer detriment as a result of the conduct of these entities. The regulator sought the injunctions to protect investor funds while an ASIC investigation is continuing.
Clients of the entities are encouraged by the regulator to report information to ASIC on AGM Markets, OT Markets and/or Ozifin, on 1300 300 630 or go to www.asic.gov.au/complain .