The regulator has slapped down a firm for operating without a licence to serve clients in Australia, it said.

FX Primus, a firm providing trading in margin foreign exchange and contracts for difference, has agreed with the country’s regulator to change its websites and tell Australian clients it is not licensed to provide them with financial services.

The Australian Securities and Investments Commission said in a statement yesterday that it has raised a number of issues, including the provision of unlicensed financial services to Australian investors, with various entities within the FX Primus group of companies. Those entities include FXPrimus Australia Pty Ltd, FX Primus Group Limited and FX Primus Europe (CY) Ltd. FX Primus Europe (CY) Ltd has stated it had hundreds of Australian investors, ASIC said.

“Individuals or businesses who want to offer financial services to Australian investors on their own behalf must hold an Australian financial services (AFS) licence. None of the entities in the FX Primus group of companies hold an AFS licence,” the regulator said. The business operates through websites including: www.fxprimus.com, www.fxprimus.eu and www.fxprimusgroup.com.

“The website www.fxprimus.com made representations which suggested that FX Primus was authorised to deal in financial products in Australia and was compliant with ASIC regulation. This included statements such as, `[FX Primus is] operating under the jurisdiction of the Australian Securities & Investment Commission (ASIC)’ and `[FX Primus is] operating under ASIC regulations’,” ASIC said.

“Financial service providers must ensure that they are properly licensed or authorised in Australia before they promote financial services to Australian investors. ASIC will not hesitate to take action where we have concerns Australian investors are being targeted by unlicensed or unauthorised operators,” Cathie Armour, ASIC commissioner, said.