Prospero Markets Pty Ltd

Prospero Markets Pty Ltd (in liquidation) (Prospero) was a licensed retail over-the-counter (OTC) derivatives provider which offered contracts for difference (CFDs) in margin FX and other assets based in Melbourne.

In November 2023, ASIC commenced an investigation into Prospero regarding concerns that Prospero was not meeting its obligations as an Australian Financial Services licensee.

ASIC commenced its investigation into Prospero following the Australian Federal Police’s Operation Avarus-Nightwolf 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.

Winding up Orders

Following an application by ASIC, on 10 April 2024, the Federal Court ordered that Prospero be wound up and appointed liquidators to Prospero.

ASIC took this action to ensure funds were returned to Prospero’s clients in a safe, orderly way and as quickly as possible. ASIC sought to have liquidators appointed to undertake this task due to the serious concerns ASIC held about the management of Prospero’s business. These included concerns about Prospero’s compliance with its reporting obligations relating to its client money accounts. These are the statutory trust accounts in which client funds must be maintained in accordance with the Corporations Act 2001 (Cth).

For more information, see ASIC’s media release 24-070MR.

Liquidation

Andrew Cummins, Jonathon Keenan and Peter Krejci of BRI Ferrier were appointed as liquidators of Prospero on 10 April 2024 (Liquidators). The role of the Liquidators is to take control of Prospero and wind up its affairs in an orderly way, including distributing client funds from the client money accounts.

ASIC is aware that:

the Liquidators have commenced proceedings in the Federal Court (proceedings number NSD1020/2024) to seek advice and directions from the Court about the process for returning client funds, including whether the Liquidators should pay claims by clients of a related overseas entity, and the payment of the Liquidators’ fees and costs;
on 17 October 2024, the Court made an order that any person, including creditors of Prospero (which includes clients of Prospero who are owed money) can apply to ask the Court to vary the orders (orders);
on 17 October 2024, the Court also appointed Mark Wilson of the law firm W Advisors, to the role of contradictor in the proceedings. The contradictor does not represent any particular party. The contradictor’s role is to assist the Court to determine the questions raised by the Liquidators. It is the Contradictor’s duty to put forward reasonably arguable contrary points to those put forward by the Liquidators;
the proceedings are listed for final hearing on 1 April 2025;
the Liquidators will not be able to commence returning funds to clients until after the proceedings are finalised.

ASIC is monitoring the progress of the proceedings and is in contact with the Liquidators.

The Liquidators publish updates on their website regarding the liquidation and related court proceedings at https://briferrier.com.au/about-us/current-matters/prospero-markets-pty-ltd.

Licence cancellation

In September 2024, ASIC cancelled Prospero’s Australian Financial Services licence as it is in liquidation. The licence had been suspended since 20 December 2023.

For more information, see ASIC’s media release 24-218MR.

Contacts

ASIC continues to receive inquiries from Prospero’s clients who are concerned about the timely return of their funds.

If you are an investor, you can contact the Liquidators by email at prosperomarkets@brifnsw.com.au, or by phone on 1300 291 012 (toll free) or +61 2 8044 0530 (international).

General information on investing

ASIC has published information on investing at www.moneysmart.gov.au/investing, forex trading at https://moneysmart.gov.au/investment-warnings/forex-trading and contracts for difference (CFDs) at https://moneysmart.gov.au/investment-warnings/contracts-for-difference-cfds.

ASIC