ASIC Suspends AGM Markets Licence

Following an investigation, ASIC has suspended the Australian financial services (AFS) licence of FX provider AGM Markets Pty Ltd (AGM).

The move is part of ASIC's ongoing crackdown on the margin FX industry and work around retail investment in foreign exchange.

AGM stopped operating a financial services business in May 2014 however has indicated it intends to recommence its business at the end of April 2015. This move follows a number of changes to the company's name and corporate structure, including members. ASIC has the power to suspend or cancel an AFS licence where a financial services business has ceased to operate.

ASIC Commissioner Greg Tanzer said, 'Participants in the margin FX industry can be exposed to turmoil in currency markets and ASIC wants to ensure licensees wanting to be part of this sector are in a position to meet their AFS licence obligations.

'If businesses can't demonstrate this, ASIC can cancel licences.'

AGM's licence has been suspended for six months from 26 March 2015.