ASIC’s investigation of Global Derivative Services (GDS) found the firm had failed to comply with a series of its AFSL conditions, including the lodgement of accounts, payment of debts, and failing to maintain an Australia-resident director – currently GDS' only director, Brenton Ganesh Nair, resides in South Africa.
ASIC commissioner Greg Tanzer said licensees must ensure they are up-to-date and actively complying with all current obligations.
“ASIC's action in cancelling the AFS licence of GDS continues its focus on retail over-the-counter derivative providers, including margin foreign exchange,” said Mr Tanzer.
“ASIC will not hesitate to act against licensees who fail in this regard."
GDS – which labels itself as a “leader” in the field of forex and binary options – also failed to comply with the appointment and ongoing competency of the key person on the AFSL and failed to provide up-to-date details with the Financial Ombudsman Service and its website.
The regulator said it is continuing to conduct surveillance of this industry and currently has several investigations into retail over-the-counter derivative businesses on foot.
GDS has the right to lodge an application for a review of ASIC’s decision with the Administrative Appeals Tribunal.
