New Zealand regulator suspends AxiCorp’s derivatives licence
New Zealand’s Financial Markets Authority (FMA) has suspended the derivatives issuer licence of AxiCorp Financial Services (trading as AxiTrader) for material breaches of the Financial Markets Conduct Act (FMCA).
The suspension regards: making a regulated offer to retail clients in New Zealand without a compliant product disclosure statement or disclose register entry; failing to lodge audited financial statements; and failing to obtain an assurance engagement with a qualified auditor, for its processes, procedures and controls, within four months of its balance date.
AxiCorp also contravened its licence conditions by failing to notify the FMA as soon as practicable of a change to senior or other key staff, following the appointment of its CFO.
The FMA considers that AxiCorp has demonstrated that it does not have adequate systems, processes, or resources in place to ensure compliance with FMCA or to effectively perform services under a licence.
AxiCorp’s licence will remain suspended until the FMA is satisfied that its concerns have been addressed.
The terms of the suspension ensure that the FMA has oversight of AxiCorp’s remediation efforts.
During the suspension, AxiCorp is permitted to act as a derivatives issuer in respect of a regulated offer of derivatives for the sole purpose of entering derivatives with existing clients in order to close out any open positions AxiCorp has with existing clients.
The suspension is effective from 29 July 2019.