ASIC has cancelled the Australian financial services (AFS) licence of over-the-counter (OTC) derivatives issuer, Prospero Markets Pty Ltd (in liquidation) (Prospero) effective from 25 September 2024. Prospero's AFS licence was suspended in December 2023, after Prospero failed to lodge its 2023 audited financial accounts.
Following an application by ASIC, on 11 April 2024 the Federal Court ordered that Prospero be wound up on just and equitable grounds and that liquidators be appointed. Under the Corporations Act, ASIC may suspend or cancel an AFS licence if the licensee is being wound up or if the licensee has ceased to carry on a financial services business.
ASIC has specified that until 25 March 2026, Prospero Markets must continue to be a member of AFCA, continue to have arrangements for compensating retail clients including the holding of professional indemnity insurance cover, and must comply with the ASIC Client Money Reporting Rules 2017.
Prospero may apply to the Administrative Appeals Tribunal for a review of ASIC's decision to cancel its AFS licence.
Background
Prospero held AFS licence number 423034 from 19 December 2012, which authorised it to provide the following services to retail and wholesale clients:
- issue and make a market in derivatives and foreign exchange contracts;
- deal in derivatives and foreign exchange contracts on behalf of clients; and
- provide financial product advice in relation to derivatives and foreign exchange contracts.
On 16 November 2023, ASIC commenced an investigation of suspected contraventions of the Corporations Act by Prospero, in the period from 1 March 2021. ASIC commenced its investigation into Prospero following the Australian Federal Police's Operation Avarus-Nightwolf which resulted in former officers and responsible managers of Prospero being charged with money-laundering offences in October 2023 relating to the Changjiang Currency Exchange money remitting chain.
The appointed liquidators are Andrew Cummins, Jonathon Keenan and Peter Krejci of BRI Ferrier.
Clients or creditors of Prospero can contact the liquidators using the following details:
