The Australian Securities and Investments Commission (ASIC) has updated the Australian Financial Services (AFS) licences of two entities, including Squareknot Pty Ltd and FOREX Plus Australia, on its website.

ASIC revokes AFS licence of entity Squareknot Pty Ltd

ASIC has revoked the AFS licence of Sydney-based financial services provider Squareknot Pty Ltd (Squareknot). Since December 23, 2015, the entity has held an AFS licence (number: 454694) and is authorised to provide general advice and trading on securities for wholesale clients. The revocation of the licence took effect on 6 May 2020.

ASIC found that the entity Squareknot did not meet the basic financial requirements of the licence and revoked its AFS licence. Under the Companies Act, AFS licensers are required to comply with their licensing regulations. If a licensee does not comply with the relevant licensing regulations, ASIC can suspend or revoke their AFS licence.

Squareknot has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision.

ASIC suspend entity Forex Plus Australia's AFS licence

ASIC has suspended the AFS licence of New South Wales financial services provider Forex Plus Australia Pty Ltd (Forex Plus) for up to six months. Since March 10, 2004, the entity has held an AFS license (No. 259763) and is authorized to provide advisory and market-making forex contracts to wholesale clients.

ASIC is aware that Forex Plus has not provided financial services for some time and is suspending its licence. Under the Companies Act, ASIC can suspend or revoke a licensee's AFS licence if the licensee ceases to provide financial services. Forex Plus failed to file its audited accounts for several years. AFS licensee is required by law to submit audited accounts annually to demonstrate that they have sufficient resources to provide the services covered by the licence and to conduct their business in accordance with the law.

ASIC suspended Forex Plus' licence, rather than revoking it, because the licensee indicated it might start offering financial services again. However, if Forex Plus intends to resume providing financial services, it will need to submit audited accounts during the suspension period.

Forex Plus has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision.