Post: Federal Court winds up retail OTC derivative issuer Prospero Markets Pty Ltd

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.

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