FX/CFDs Broker Probis Goes Bankrupt, ASIC Halts Its License

<p>The
Australian Securities and Investments Commission (<a href="https://www.financemagnates.com/tag/asic/" target="_blank" rel="follow">ASIC</a>) took action against
Probis Financial Services Pty Ltd today (Monday), suspending its Australian
financial services (AFS) license. This move came after Probis opted for
voluntary administration in mid-July.</p><p>ASIC Suspends License of
FX/CFDs Broker</p><p>Probis,
placed under voluntary administration on 17 July 2023, was suspended by <a href="https://www.financemagnates.com/terms/a/asic/">ASIC</a> shortly after. Ensuring consumer protection, ASIC's
stipulation mandates that Probis will remain affiliated with the Australian
Financial Complaints Authority (AFCA). Furthermore, compensatory measures for
retail clients should be intact until October 2023.</p><p>Until recently, Probis was
an Australian investment company that offered access to margin FX/CFD trading
and asset management. However, it declared bankruptcy a few weeks ago. The
quartet of Richard Albarran, Brent Kijurina, Cameron Shaw, and Aaron Dominish
from Hall Chadwick were handed the reins as the voluntary administrators for
Probis due to the insolvency proceedings.</p><blockquote><p lang="en" dir="ltr">ASIC has suspended the Australian financial services licence of Probis Financial Services Pty Ltd after it was placed into voluntary administration on 17 July 2023. Read more <a href="https://t.co/UP29hlD8wf">https://t.co/UP29hlD8wf</a></p>— ASIC Media (@asicmedia) <a href="https://twitter.com/asicmedia/status/1688353097809281024?ref_src=twsrc%5Etfw">August 7, 2023</a></blockquote><p>Before this
suspension, Probis was empowered with an AFS licence which granted the company
diverse financial privileges. The company was able, among other things, to offer
general financial advice, handle specific financial commodities, or engage in
foreign exchange contracts and derivatives market-making. In admission, the AFS
license authorized the company to administer a registered investment scheme
dedicated to financial assets and extend custodial and depository utilities to
both retail and wholesale clientele.</p><p>While
currently suspended, Probis is not entirely cornered. They still retain the
right to challenge ASIC's verdict by reaching out to the Administrative Appeals
Tribunal for reconsideration.</p><p>Recent Regulatory Actions</p><p>The
Australian regulatory body recently announced removing the <a href="https://www.financemagnates.com/forex/asic-revokes-interim-stop-order-against-cfds-broker-mitrade/" target="_blank" rel="follow">interim stop
order placed on Mitrade Global Pty Ltd</a>, a contracts for differences (CFDs)
broker. This temporary order was first imposed on 22 June due to design and distribution obligations (DDO) violations.</p><p>In the
meantime, the regulator took legal action against the Australian branch of
<a href="https://www.financemagnates.com/terms/m/multi-asset/">multi-asset</a> broker eToro, accusing it of lapses in its CFDs practices. <a href="https://www.financemagnates.com/forex/brokers/asic-sues-etoro-for-lapses-around-identifying-cfds-investors/" target="_blank" rel="follow">ASIC
revealed last week</a> that eToro Aus Capital Limited had violated DDOs and failed
in its license obligation to operate "efficiently, honestly, and
fairly."</p><p>Earlier in
July, Openmarkets Australia Limited, a retail broker, <a href="https://www.financemagnates.com/forex/aussie-broker-openmarkets-fined-au45m-for-market-integrity-violations/" target="_blank" rel="follow">faced a hefty penalty of
AUD 4.5 million</a> for numerous breaches of market integrity rules. Furthermore,
<a href="https://www.financemagnates.com/forex/news-nuggets-15-june-asic-cancels-license-bafin-probes-illegal-trading-brands/" target="_blank" rel="follow">ASIC has canceled</a> the AFS license granted to APBG Capital Pty Ltd. This
license allowed APBG Capital to engage in managed investment scheme interests
and offer financial counsel to wholesale clients.</p>

This article was written by Damian Chmiel at www.financemagnates.com.