OliveFX had its Australian Financial Services License (AFS) revoked by the Australian Securities and Investments Commission (ASIC) in early May. The main reason for this abrupt decision was influenced by ASIC’s concerns that the broker had not been meeting the obligations and requirements of an AFS holder.
The Australian watchdog has also banned Scott John Morrison, the former director of the firm, from offering financial services for a period of no less than 7 years, starting from the 3rd of April this year.
OliveFX was a holder of the license since 2010, making this recent development even more impactful. According to ASIC’s official statement, that can be found on the agency’s website, the brokerage firm did not comply with a number of important directives:
- It did not achieve an efficient and honest provision of financial services;
- It’s conduct was unreasonable and an times unprincipled;
- It made misleading statements, while also engaging in a similarly deceptive manner;
- It made unsolicited calls to possible investors;
- It failed at managing its representatives to act with the clients’ interests as their priority, as well failing to oblige them not to make any misleading or false statements to users;
- It did not comply with rules stating that reps have to be trained to be work-competent;
- It did not have a compliant dispute resolution system;
For now OliveFX cannot accept new clients, and is required to inform all their existing client base of ASIC’s move to deregulate them.