The Australian Securities and Investments Commission (ASIC) has revealed that it has canceled the license of former stockbroker BBY Limited.
Although the cancellation became effective on 24 June 2021, the license will continue until 31 March next year, based on the terms of the license.
Based on the terms, BBY will still have access to the National Guarantee Fund and external dispute resolution scheme.
BBY will compensate clients for losses suffered
According to ASIC, the license will make sure that the liquidators and receivers have legal authority for a “holder identification number” for clients when transferring to another market participant.
Additionally, the license provides the avenue for BBY to have deals for compensating retail clients for damages and loss suffered due to results of breaches of the Compensation Act.
BBY was suspended for three years in May 2015 after the appointment of Ian Hall and Stephen Vaughan as joint administrators to the firm. In 2018, its suspension was extended for one year. ASIC further extended the suspension twice until 30 June 2021.
Websites displaying false registration certificates
ASIC said it discovered some websites linking or displaying false registration certificates. According to the watchdog, these companies include A Glance Group LLC, COIN POBIT, and Global Capital Swiss Corp. The troubled BBY Limited formerly operated the SmartTrader brokerage platform.
BBY Ltd is the maim company operating the BBY group. It has its headquarters in Sydney and offices in the U.S., the United Kingdom, New Zealand, and Australia.
The BBY group has 10 entities, including SmartTrader Ltd and BBY Advisory Services. Earlier, the SmartTrader also had its license canceled by ASIC.
More actions against violators
ASIC is one of the most renowned financial regulators. It has increased its regulatory measures against financial service providers over the past year Last year, the AFS licenses of USGFX, Selectinvest, and Jels Financial Group were canceled by the regulator.
Recently, Forex CT entered the wrong book of the regulator, with a court holding ASIC’s actions against the company. As a result, the firm was fined AUD20 million.