<p>The Australian Securities and Investments Commission (<a href=”https://www.financemagnates.com/terms/a/asic/” target=”_blank” id=”dfb41d67-b79e-4b09-b365-1f341b85a51b_1″ class=”terms__main-term”>ASIC</a>) announced on Wednesday that the country’s Administrative Appeals Tribunal (AAT) had upheld the decision for the <a href=”https://www.financemagnates.com/tag/afsl/” target=”_blank” rel=”follow”>cancellation of the license</a> of Olive Financial Markets Pty Ltd (Olive).</p><p>AAT Upholds Olive’s AFS License Cancellation</p><p><a href=”https://www.financemagnates.com/forex/brokers/asic-cancels-afs-licence-of-olive-financial-markets/” target=”_blank” rel=”follow”>ASIC originally canceled Olive’s Australia Financial Services (AFS) license</a> on 16 March 2020, and the company quickly applied to the AAT on 17 March, in which it asked for a review and stay of ASIC’s decision to cancel the license. The AAT also granted a stay of ASIC’s decision on 23 April 2020 but restricted the company from onboarding new clients. The latest order of AAT has now sealed ASIC’s decision.</p><p>Olive Financial Markets is an <a href=”https://www.financemagnates.com/terms/o/online-trading/” target=”_blank” id=”93afd583-ea4d-45cf-a1e0-8d951e5d8f48_1″ class=”terms__secondary-term”>Online Trading</a> provider of securities and derivatives, including equities, options, contracts for difference, futures, and margin FX. Additionally, the firm offers managed discretionary accounts and financial planning services among other services.</p><p>Check out the recent FMLS session on “Regulation Roundup: Everything You Need to Know for 2023.” </p><p>Olive Violated the Aussie License Rules</p><p>In the latest announcement, ASIC detailed that the AAT found out about Olive’s contraventions after a hearing in early 2021. The company violated regulations in many areas, including engaging in unconscionable conduct, prohibited hawking, misleading or deceptive conduct, and providing false or misleading statements. It even failed to provide appropriate advice and did not act in the clients’ best interests.</p><p>”The AAT stated these ‘problems went undetected – or were ignored – over a long period partly because of serious shortcomings in the compliance arrangements and complaints handling process’ and that this ‘bad behaviour went on under the noses of senior managers who manifestly failed to supervise those for whom they were responsible’,” ASIC stated.</p><p>Olive made improvements to its business following ASIC’s original move. However, the AAT believes that the company is <a href=”https://www.financemagnates.com/forex/brokers/axicorp-settles-australian-financial-services-license-issue-with-asic/” target=”_blank” rel=”follow”>unlikely to contravene its obligations</a> in the future and found ASIC’s decision appropriate.</p><p>Apart from cancelling Olive’s AFS license, the regulator banned the company’s former director, Scott John Morrison, from providing financial services for seven years, which became effective on 3 April 2020. Unlike the company, Morrison did not appeal the regulator’s decision.</p>
This article was written by Arnab Shome at www.financemagnates.com.
