Australian Court Orders The Dissolution Of Prospero Markets
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The Federal Court of Australia has provided liquidators for Prospero Markets Pty Ltd. The Australian Court made the move as major officials of the platform are faced with charges concerning financial fraud of more than $200 million.
The decision comes after the Australian Securities and Investments Commission (ASIC) showed several concerns about Prospero’s management. The application revealed an issue in Prospero’s commitment to offering financial services.
ASIC Plans Shutting Down Prospero With For Its Failure To Obey Financial Rules
Australian regulator ASIC wants to close down Prospero because it wasn’t following the Australian financial services license conditions and rules. The regulatory body stated that Prospero did not fulfill many requirements like lodging financial accounts, maintaining an auditor, and providing vital reports on derivatives transactions.
The appointed liquidators are Jonathon Keenan, Andrew Cummins, and Peter Krejci from BRI Ferrier. Their principal job is to return the stolen funds to clients. This is vital for ASIC because there’s a lot of money at stake.
Prospero’s issues intensified as ASIC began a strong investigation concerning the financial service provider. The Australian Federal Police has also accused some previous Prospero officers of laundering money.
The liquidation will deal with the ongoing questions from Prospero’s customers about getting their money back. It will also ensure that the financial service provider will follow all the rules set by the government.
ASIC Continues Its Regulatory Activities Across Licensed Operators
ASIC has been regulating Prospero Markets since 2012 to ensure that they follow all the rules and regulations.
The Australian Securities and Investments Commission issued a license to Prospero. The license allows them to trade and give advice about financials like derivatives and FX contracts.
But they got in trouble in December 2023 because they didn’t hand in their financial reports for that year. Now, they can’t do business until September 26, 2024.
Prospero has been around for 10-15 years focusing on market making. They have a full license for MT4/5 and mainly work with local brokers. The firm offers various financial products like forex, metals, commodities, stock indices, equity CFDs, VIX, energy, color metals, and agriculture.
The financial service provider has done a good job with their licenses, business practices, managing risks, software. It holds several licenses and has provided all the necessary information to the government.
The latest regulatory lapse by the company is evidence that the Australian regulator is serious about protecting the integrity of the market. The goal is to prevent companies from taking advantage of investors, and causing them to lose money.
