LeapRate Exclusive… LeapRate has obtained an official statement from management of retail forex broker FXPrimus regarding recent action taken against the company by Australian financial regulator ASIC.
LeapRate readers will recall we reported yesterday that ASIC ordered FXPrimus to stop targeting Australian investors, just a week after blocking FXPrimus’ planned IPO on the Australia Stock Exchange ASX. ASIC’s actions (re the IPO) seem to be more aimed at the ‘industry’ than at FXPrimus specifically, not wanting a non-ASIC regulated broker to go public in Australia.
The FXPrimus official statement reads as follows:
As a leader in the global FX industry, FXPRIMUS operates in multiple jurisdictions and interacts with both regulators and clients all over the globe. We have great respect for the role that regulators play in our industry and believe that clear, concise regulation benefits both traders and brokerage firms. In its 6 year history, FXPRIMUS has always endeavored to adhere to local regulations in every country in which we operate. FXPRIMUS has not, does not, and will not intentionally mislead clients with regards to our legal registrations and the regulations by which we operate. The company is fully cognizant that the trust of its clients is paramount, and we believe our track record and focus on safety of client funds clearly demonstrate our commitment to client trust.
Recent press reported that FXPRIMUS was requested by ASIC to cease accepting Australian clients and furthermore relinquish any current Australian clients. FXPRIMUS promptly & concisely complied with these requests. The company advised the small number of Australian clients (less than 1% of overall client base) they would need to cease trading and close their accounts. FXPRIMUS complied with all of the regulators requests, often within 24 hours of receiving said requests.
Additionally it was asserted that we made representations on our website which suggested we were authorized to deal in financial products in Australia and were compliant with local regulation. The facts are that on May 7, 2014 FXPRIMUS issued a Press Release announcing it had become a Corporate Authorized Representative (“CAR”) in Australia. To clarify, a CAR must be “under” a licensed entity, and the licensed entity must be registered and regulated by the local jurisdiction regulators. Furthermore, when discussing the CAR on our website, no mention was made that FXPRIMUS was directly licensed by the local regulator. FXPRIMUS noted that the company was a CAR, and the text used on the website was identical to verbiage used by other CAR’s and was pre-approved by counsel.
FXPRIMUS regrets any confusion or concern these issues have caused its clients. We will continue to operate in conjunction with global regulators and under the principles that have made us a global leader in the FX industry; safety of client funds, innovative products, and an un-biased trading experience for our clients.