The Federal Court has ordered that Prospero Markets Pty Ltd (Prospero) be wound up on just and equitable grounds and that liquidators be appointed following an application by ASIC.
ASIC applied for these orders because it holds a broad range of concerns regarding the management of Prospero’s business, including in relation to compliance with its Australian financial services (AFS) licence conditions and obligations as an OTC derivatives issuer under the Corporations Act (24-034MR).
ASIC has received enquiries from clients who are concerned about the return of their funds. In bringing the application, ASIC considered that the appointment of liquidators was the best way to ensure the efficient return of client funds.
In making his decision to wind up the company Registrar Luxton stressed the importance for licensees to comply with the statutory obligations of an Australian Financial Services licence, such as the need to:
- appoint and maintain an auditor
- lodge audited financial accounts with ASIC
- lodge monthly derivative client money reconciliations with ASIC
- lodge annual derivative client money declarations with ASIC
- provide derivative transaction reporting data to ASIC.
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: prosperomarkets@brifnsw.com.au
Phone: 1300 291 012 (toll free) or +61 2 8044 0530 (international)
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 derivatives and foreign exchange contracts
- deal in derivatives and foreign exchange contracts on behalf of clients
- provide financial product advice in relation to derivatives and foreign exchange contracts.
Prospero's AFS Licence was suspended in December 2023, after Prospero failed to lodge its 2023 audited financial accounts. The suspension is currently in place until 26 September 2024 (23-352MR).
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.