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ASIC winds up derivatives trader

The corporate regulator has obtained orders to wind up a Sydney-based retail derivatives issuer for dishonestly claiming it had an Australian Financial Services Licence.

According to a statement from the Australian Securities and Investments Commission,the Federal Court has awarded orders to wind up derivatives issuer Apex Derivatives Pty Ltd.

The company is being wound up because it “was advertising through its website that it had an Australian Financial Services (AFS) licence, when it did not; appeared to be insolvent; had ceased all business operations; and from February 2013, did not have a director resident in Australia”.

“On 6 February, ASIC was advised that Apex did not have enough cash to repay 270 clients in full; it held net tangible assets of less than $500,000 and was in breach of its AFS licence requirements,” the statement said.

“On 20 February 2013, ASIC cancelled Apex' AFS licence.”

Daniel Walley and Scott Pascoe of PPB Advisory have been appointed by the Court as liquidators.