ASIC imposes licence conditions on FX trader

According to a statement released by the Australian Securities and Investments Commission (ASIC), Sydney-based Australian financial services licence (AFSL) holder Roco International Pty Ltd - trading as Roco Forex - has come under fire after the regulator found problems with its risk management systems.

The statement explains that “under the additional licence conditions, Roco will be required to: document its governance, internal control and compliance arrangements for managing market risk; engage an independent expert to review and report on the continuing adequacy and effectiveness of Roco's risk management systems over a two-year period; and implement any recommendations made by the independent expert”.

“Licensees have an obligation to have adequate risk systems in place,” said ASIC commissioner Greg Tanzer.

“This is non-negotiable. These systems play a fundamental role in building investor confidence and ASIC expects nothing less than the highest standards.”

ASIC imposes licence conditions on FX trader

Reporter

Last Updated: 26 August 2013 Published: 26 August 2013