New Zealands FMA Lifts License Suspension on AxiCorp (Axi)

New Zealands FMA Lifts License Suspension on AxiCorp (Axi)

The brokers license was suspended in June 2019.

New Zealands Financial Markets Authority (FMA) has lifted the derivatives issuer license suspension imposed on AxiCorp Financial Services Pty Limited, which provides FX and CFDs trading services under the Axi brand.

Though the regulator made the announcement on its decision on Thursday, the lifting of the suspension on the broker came into effect on December 2.

Now, the Australia-headquartered broker can again operate in neighboring New Zealand and offer financial derivatives products.

Though operating since 2007 with permissions from the Australian regulator, AxiCorp received its New Zealand license in June 2018. However, its Kiwi license was suspended only after a year by the FMA, citing ‘material breaches’ of local regulations.

The FMA at that time alleged that the broker provided services without a compliant Product Disclosure Statement or Disclose register entry, failed to lodge audit financial statements, and failed to receive an assurance engagement with a qualified auditor before the mandatory deadline.

“AxiCorp has since demonstrated to the FMA that it has taken adequate steps to address the material breaches and that it has adequate systems, processes and resources in place to ensure compliance with the FMC Act and to effectively perform services under the license,” the FMA stated in its latest announcement.

A Global Broker

Apart from Australia and New Zealand, Axi also has a significant presence globally as a broker. It is also licensed by the regulators in the United Kingdom, the United Arab Emirates, and St Vincent and the Grenadines.

Finance Magnates recently reported that UK operations of Axi saw a 46 percent jump in its client revenue in the financial year 2021, making its presence more significant in the country. Meanwhile, the broker is also expanding its services with the launch of copy trading services and even widening its product line.