IKON Australia Agrees with ASIC to Separate Overseas Client Funds From its AFS License

Following concerns raised by ASIC, retail over-the-counter (OTC) derivative issuer Ikon (Australia) Pty Ltd (AFSL No. 416279) (Ikon) has agreed to separate client money held in compliance with its obligations under the Corporations Act, from money held for overseas investors, which is not associated with financial services provided under its AFS licence.

Ikon's current business arrangements and structure are such that any financial service provided by Ikon to overseas clients is provided from offshore. Consequently these services would not be considered to be provided within Australia, and are therefore not financial services provided under its AFS licence.

Ikon has confirmed that only 0.03% of their active clients are made up of Australian investors. A licensee's client trust account that is used in connection with the provision of its financial services can only hold client money in connection with financial services covered by the AFS licence. Accordingly, Ikon is taking steps to obtain the consent from each Australian client to transfer their money into a separate segregated client trust account. These measures are aimed to ensure there is no mingling of client money with any other monies that have no connection to the financial services covered by the AFS licence.

Ikon has also made changes to its website as a result of ASIC's enquiries and agreed to directly inform their overseas clients that the services they provided outside this jurisdiction are not covered by Australian regulations.