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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

ASIC to wind up derivatives trader

16 July 2013

ASIC has issued a court application to wind up a Sydney-based retail derivatives issuer for dishonestly claiming it had an Australian Financial Services Licence.

The company Apex Derivatives which promoted trading in forex and contracts for difference (CFD) via its website had falsely advertising through its website that it had an (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, was in breach of its AFS licence requirements, and its licence was subsequently cancelled by ASIC on 20 February.

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

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