On 5 November 2018, ASIC cancelled the Australian Financial Services (AFS) licence of the retail OTC derivative issuer, AGM Markets Pty Ltd (AGM). ASIC found AGM’s financial services business involved core elements of unconscionability and unmanaged conflicts of interest and followed a business model that disregarded key conduct requirements. (18-340MR).
Until 3 April 2018, Mr Ashkenazi was the only Australian resident director, and was the Chief Executive Officer of AGM.
In making the order to ban Mr Ashkenazi for eight years, ASIC found that Mr Ashkenazi:
- as a responsible manager, had a key role regarding AGM’s financial services business and had been involved in the contravention of a financial services law, namely AGM’s contravention of engaging in unconscionable conduct in connection with financial services;
- is likely to contravene a financial services law; and
- is not adequately trained, or is not competent, to provide a financial service or financial services.
Mr Ashkenazi has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC is Australia’s integrated corporate, markets, financial services and consumer credit regulator.
The ASIC Act requires us to:
- maintain, facilitate and improve the performance of the financial system and entities in it
- promote confident and informed participation by investors and consumers in the financial system
- administer the law effectively and with minimal procedural requirements
- enforce and give effect to the law
- receive, process and store, efficiently and quickly, information that is given to us
- make information about companies and other bodies available to the public as soon as practicable
- take whatever action we can, and which is necessary, to enforce and give effect to the law.
