ASIC has suspended the Australian financial services (AFS) licence of over-the-counter (OTC) derivatives issuer, Prospero Markets Pty Ltd (Prospero). Prospero has also provided an undertaking to ASIC that it will not deal in client funds without ASIC’s agreement.

Prospero’s licence suspension means it cannot provide financial services during the suspension period from 20 December 2023 until 28 February 2024.

Following an administrative hearing, ASIC found that Prospero failed to lodge its annual financial statement and audit report for the financial year ending 30 June 2023 within the prescribed timeframe and in compliance with its AFS licence conditions.

If Prospero fails to lodge its annual financial statement and audit report for the financial year ending 30 June 2023 during the suspension period, ASIC will consider whether the licence should be suspended for a further period or cancelled.

On 16 November 2023, ASIC commenced an investigation of suspected contraventions of the Corporations Act 2001 by Prospero, in the period from 1 March 2021.

On 19 December 2023, Prospero agreed to ASIC’s request that Prospero provide an undertaking to ASIC that it will not deal in client funds without ASIC’s permission. The undertaking will remain until at least 8 February 2024 to allow ASIC time to investigate its concerns.

Prospero is assisting ASIC with its investigation.

Prospero may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision to suspend its AFS licence.

Background

Prospero holds AFS licence, number 423034, which authorised it to provide the following services to retail and wholesale clients:

• issue and make a market in derivates 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.

Editor's note 1:

On 8 February 2024, Prospero agreed to extend the undertaking, in its current form, to 28 February 2024.

Editor's note 2:

On 27 February 2024, Prospero agreed to extend the undertaking, in its current form, to 1 March 2024.

Editor’s note 3:

Following a further hearing on 23 February 2024, the suspension of Prospero’s AFS licence has been extended to 28 March 2024.

Editor’s note 4:

On 29 February 2024, ASIC issued proceedings in the Federal Court to wind up Prospero. Prospero has agreed to extend the current undertaking until final order in that proceeding. More information is available at 23-034MR.

Editor's note 5:

On 28 March 2024 the suspension of Prospero’s AFS licence was extended to 26 September 2024.