Formax Removes False Statements About the Suspension of its Subsidiary's Licence

Following concerns raised by ASIC, Formax International Market Limited (Formax) has removed a previously published media release from its group website that falsely claimed its wholly owned subsidiary, Australian Capital Markets Advisory Services Pty Ltd ACN 150 530 331 (ACMAS), had its Australian financial services licence (AFSL) suspended as part of a normal practice that occurs whenever an enterprise restructures. The release also claimed that the suspension will be lifted once the restructure had been finalised.

The suspension by ASIC of an AFSL is not a normal practice that occurs when an entity restructures.

ASIC Commissioner Cathie Armour said, 'ASIC undertakes all action for good reason. It is important that industry and investors understand those reasons. In this case we were concerned to discover an overseas parent commenting in a way that misrepresented the action ASIC had taken and was likely to mislead investors.'

Background

On 4 August 2015, ASIC suspended the AFSL of retail OTC derivative provider ACMAS until 30 October 2015 on the ground that it had ceased to provide financial services in this jurisdiction. The suspension was subsequently extended to 27 November 2015.