ob体育 has cancelled the Australian financial services (AFS) licence of over-the-counter (OTC) derivatives issuer, Prospero Markets Pty Ltd (in liquidation) (Prospero) effective from 25 September 2024. Prospero's AFS licence was suspended in December 2023, after Prospero failed to lodge its 2023 audited financial accounts.
Following an application by ob体育, on 11 April 2024 the Federal Court ordered that Prospero be wound up on just and equitable grounds and that liquidators be appointed. 听Under the Corporations Act, ob体育 may suspend or cancel an AFS licence if the licensee is being wound up or if the licensee has ceased to carry on a financial services business.
ob体育 has specified that until 25 March 2026, Prospero Markets must continue to be a member of AFCA, continue to have arrangements for compensating retail clients including the holding of professional indemnity insurance cover, and must comply with the ob体育 Client Money Reporting Rules 2017.
Prospero may apply to the Administrative Appeals Tribunal for a review of ob体育鈥檚 decision to cancel its AFS licence.
Background
Prospero held AFS licence number 423034 from 19 December 2012, which authorised it to provide the following services to retail and wholesale clients:
- issue and make a market in derivatives and foreign exchange contracts;
- deal in derivatives and foreign exchange contracts on behalf of clients; and
- provide financial product advice in relation to derivatives and foreign exchange contracts.
On 16 November 2023, ob体育 commenced an investigation of suspected contraventions of the听Corporations Act听by Prospero, in the period from 1 March 2021. ob体育 commenced its investigation into Prospero following the Australian Federal Police鈥檚听听which resulted in former officers and responsible managers of Prospero being charged with money-laundering offences in October 2023 relating to the Changjiang Currency Exchange money remitting chain.
The appointed liquidators are Andrew Cummins, Jonathon Keenan and Peter Krejci of BRI Ferrier.
Clients or creditors of Prospero can contact the liquidators using the following details:
Email:听[email protected]听听
Phone: 1300 291 012 (toll free) or +61 2 8044 0530 (international)
More information
- 23-352MR ob体育 suspends Prospero Markets鈥� AFS licence and accepts undertaking
- 24-034MR ob体育 seeks orders to wind up Prospero Markets Pty Ltd
- 24-070MR Federal Court winds up retail OTC derivative issuer Prospero Markets Pty Ltd
Editor's Note:
On 12 March 2025, having regard to the particular circumstances of the liquidation of Prospero Markets, ob体育 varied the cancellation order to remove the specifications that Prospero Markets continue to be a member of AFCA, continue to have arrangements for compensating retail clients including the holding of professional indemnity insurance cover, and comply with the听ob体育 Client Money Reporting Rules 2017. In varying the cancellation order, ob体育 specified that Prospero Markets must continue to comply with s912C(1), (1A) and (3) of the Corporations Act until 25 March 2026 to enable ob体育 to obtain information from Prospero Markets about client money held by the company.