The Australian Securities and Investments Commission (ASIC) today showed once again that it is keeping tight control over the retail Forex industry in the country. The watchdog has issued a public warning, notifying investors that Forex broker Grandegoldens Pty Ltd does not have the necessary Australian Financial Services licence to operate in Australia.
The company is indeed incorporated in Australia, having a company number (ACN 080 952 245) and a business registration number, however, that is far from sufficient to provide regulated margin Forex services in Australia.
On its website www.grandegoldens.com, the broker claims to be a regulated financial services provider in New Zealand. LeapRate check has shown, however, that New Zealand authorities have also been concerned about the operations of Grandegoldens. In fact, the FSP website shows the following message regarding the broker:
The Registrar has commenced action to deregister this Financial Service Provider under section 18(1) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
ASIC has issued the warning to ensure that investors do not unwittingly invest with Grandegoldens in the mistaken belief they are dealing with a licensed entity and are afforded certain protection that exists under the Corporations Act.
The watchdog reminds investors located outside Australia to check whether the company they are dealing with is licensed to provide services in that jurisdiction with the local regulator. Links to the websites of international regulators that are members of the International Organization of Securities Regulators (IOSCO) are available on the IOSCO website.
The full text of the warning can be viewed here.