CFD broker Prospero Market loses its AFS license for failing to submit an audit report
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Prospero Markets, a CFD broker founded in 2012, recently got its AFS license suspended for failing to submit an audit report.
The broker lost its license after the Australian Securities and Investments Commission (ASIC) decided to take regulatory action against the firm. Prospero offers access to a variety of assets, including global forex indices, share CFDs, precious metals, commodities, VIX, and more.
Prospero’s license suspended after failure to submit a financial statement and audit report
On December 22, ASIC announced that Prospero’s Australian Financial Services (AFS) license will be suspended, starting on December 20, 2023, and lasting until February 28, 2024. The suspension will prohibit the broker from offering any of its financial services to customers during the mentioned period.
ASIC made its decision after an administrative hearing, during which it determined that Prospero Market did not submit its annual financial statement and audit report for the fiscal year that ended on June 30, 2023. By failing to do so, the company has officially overstepped the deadline for submitting the reports, which is a violation of the conditions of the AFS license that it holds.
Apart from having its license suspended, Prospero also had to agree to an undertaking with ASIC. The company promised not to handle any of the clients’ funds without the regulator’s permission, which is another requirement that will stay in place until at least early February 2024. This will allow ASIC the opportunity to investigate the firm’s activities further.
ASIC will continue its investigation into Prospero
The regulator first developed concerns regarding Prospero back in March 2021. More than two years later, on November 16, 2023, ASIC decided to start an investigation, as it believed that the firm had breached the Corporations Act 2011. Despite the fact that the regulator has already suspended the firm’s license, the investigation is still ongoing.
Prospero is reportedly cooperating with the firm at this time, as it seeks to gain its license back once the investigation is complete. Prospero received an AFS license number 423034, which authorized it to offer a wide range of products and services to wholesale and retail clients alike.
The services include issuing and making a market in forex and derivatives contracts, as well as providing financial product advice related to derivatives, dealing in contracts on clients’ behalf, and alike.
The broker also has the right to appeal the regulator’s decision by applying for a review withthe Administrative Appeals Tribunal. Meanwhile, the suspension and the undertaking serve as rather significant regulatory measures by ASIC, which seeks to ensure that the firm is regulatory compliant before allowing it to get back to business as usual.
