Federal Courtroom orders liquidation of Prospero Markets

Following an ASIC software, the Federal Courtroom has mandated the liquidation of Prospero Markets on simply and equitable grounds and appointed liquidators to deal with administration issues and make sure the return of shopper funds.

ASIC’s issues and actions

ASIC’s resolution to use for liquidation stemmed from important issues relating to Prospero’s administration, particularly its compliance with Australian monetary companies (AFS) licence circumstances and its obligations as an over-the-counter (OTC) derivatives issuer.

“ASIC has acquired enquiries from shoppers who’re involved concerning the return of their funds,” the regulator stated in a media launch.

Federal Courtroom emphasises compliance

In his ruling, Registrar Tim Luxton pressured the essential want for licensees like Prospero to stick strictly to their statutory obligations underneath an AFS licence. These obligations embody sustaining an appointed auditor, lodging audited monetary accounts and month-to-month and annual spinoff shopper cash reconciliations with ASIC, and offering spinoff transaction reporting information.

Liquidators appointed

The court docket has appointed Andrew Cummins, Jonathon Keenan, and Peter Krejci of BRI Ferrier because the liquidators for Prospero.

Shoppers or collectors searching for data or help relating to the liquidation course of can contact the liquidators immediately through electronic mail or telephone.

Background and investigation

Prospero, which holds an AFS Licence (quantity 423034), was authorised to supply companies together with issuing and advertising and marketing derivatives and overseas change contracts.

The corporate’s licence was suspended in December after failing to lodge its audited monetary accounts for 2023. This suspension stays efficient till Sept. 26.

Moreover, ASIC’s investigation into Prospero adopted prices in opposition to former officers and accountable managers associated to money-laundering offences in reference to the Changjiang Foreign money Alternate cash remitting chain.

For different latest ASIC tales, click on right here and right here.

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