Following an ASIC application, the Federal Court has mandated the liquidation of Prospero Markets on just and equitable grounds and appointed liquidators to address management concerns and ensure the return of client funds.
ASIC’s decision to apply for liquidation stemmed from significant concerns regarding Prospero’s management, specifically its compliance with Australian financial services (AFS) licence conditions and its obligations as an over-the-counter (OTC) derivatives issuer.
“ASIC has received enquiries from clients who are concerned about the return of their funds,” the regulator said in a media release.
In his ruling, Registrar Tim Luxton stressed the crucial need for licensees like Prospero to adhere strictly to their statutory obligations under an AFS licence. These obligations include maintaining an appointed auditor, lodging audited financial accounts and monthly and annual derivative client money reconciliations with ASIC, and providing derivative transaction reporting data.
The court has appointed Andrew Cummins, Jonathon Keenan, and Peter Krejci of BRI Ferrier as the liquidators for Prospero.
Clients or creditors seeking information or assistance regarding the liquidation process can contact the liquidators directly via email or phone.
Prospero, which holds an AFS Licence (number 423034), was authorised to provide services including issuing and marketing derivatives and foreign exchange contracts.
The company’s licence was suspended in December after failing to lodge its audited financial accounts for 2023. This suspension remains effective until Sept. 26.
Additionally, ASIC’s investigation into Prospero followed charges against former officers and responsible managers related to money-laundering offences in connection with the Changjiang Currency Exchange money remitting chain.
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