The Australian Securities and Investment Commission (ASIC) has imposed new conditions on the Australian financial services (AFS) licence of BGC Securities Australia (BGC) to ensure that BGC’s disposition can accommodate compliance with obligations related to fixed income solutions business.
The additional conditions instruct the appointment of an independent expert for review and assessment of BGC’s procedures. The expert’s responsibility is to ensure compliance with the new conditions and recommendation of corrective actions, where necessary. BGC must provide ASIC with a strategic plan of identifying issues and the actions proposed to remedy them.
If the executive attestation is not implemented by the required time frame, BGC is required to cease admission of new customers and not charge commission of other fees for financial services until the requirements are met.
The addition of AFS licence conditions is part of first wave of enforcement actions on ASIC’s part as an element of its strategy to expand focus on wholesale OTC markets.