ASIC Licence Termination Hits CFDs Broker Over Inactivity

ASIC licence termination underscores regulator’s strict stance, revoking dormant broker authorisations to enforce compliance and market accountability. The Australian Securities and Investments Commission (ASIC) has revoked the licence of Velos Global Markets, a contracts for differences (CFDs) provider, on grounds of inactivity.

ASIC Licence Termination Highlights Regulator’s Tougher Oversight

The regulator confirmed that the cancellation became effective on 23 September 2025. Velos originally obtained its Australian Financial Services (AFS) licence in November 2017. As per ASIC, the broker had not provided any financial services under its Australian authorisation since around May 2024.

“ASIC cancelled the AFS licence under section 915B(3) of the Corporations Act 2001 (Cth) after ASIC became aware that Velos had ceased to engage in financial services,” the announcement stated.

Despite this, the company can still contest the decision by filing an appeal with the Administrative Review Tribunal.

Other Regulators Confront Inactivity Concerns

The UK’s Financial Conduct Authority (FCA) disclosed last year that nearly 20 per cent of its licensed CFDs brokers were inactive. However, the regulator has not taken any licence cancellation actions publicly, if at all. Meanwhile, several brokers have already left the UK market.

FinanceMagnates.com earlier reported that AETOS surrendered its UK licence and shut its offshore operations, continuing only with its Australian authorisation. Other brokers exiting the UK include ADSS and TrivePro, while ICM.com is also in the process of giving up its FCA licence.

In addition, ASIC revoked the licences of Xtrade, FXOpen and Prospero Markets last year. More recently, the regulator removed over 9,240 pages of content as part of broader efforts to simplify regulations that companies claim are too burdensome and costly.

The latest action against Velos Global Markets highlights ASIC’s stricter stance on maintaining active oversight of the financial services industry, ensuring that dormant entities do not retain unused licences. While regulators in other jurisdictions, such as the FCA, have been slower to act publicly on inactivity, ASIC’s move reflects its ongoing efforts to streamline the sector and enforce compliance. This not only signals a warning to other brokers but also reinforces the importance of operational transparency and accountability within the CFDs market.

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