ASIC has imposed additional conditions on the Australian financial services (AFS) licence of BGC Securities (Australia) (BGC) to ensure that BGC had adequate arrangements in place to comply with obligations related to its fixed income solutions business (the Business).
The additional conditions require BGC to appoint an independent expert to conduct a review to assess whether BGC has adequate procedures and internal controls in place to ensure compliance with obligations related to its Business. Where necessary, the expert will identify remedial actions and BGC must provide ASIC with a plan identifying the remedial actions it proposes to implement.
BGC is also required to provide ASIC with an attestation from a Senior Executive within BGC. The Senior Executive must confirm that BGC has taken all reasonable steps to satisfy himself or herself that all remedial actions have been adopted and implemented and that BGC has adequate procedures and internal controls in place to ensure compliance with obligations related to its Business.
If the executive attestation is not provided by the time required in the conditions, BGC is required to take all necessary steps to cease on-boarding new customers and not charge customers spread, commission or other fees for financial services provided in respect of its Business in Australia for so long as the attestation remains outstanding.
ASIC has conducted a number of surveillances as part its expanded focus on wholesale OTC markets. This includes through its targeted transaction work and its thematic review of allocations in debt capital markets. The imposition of a variation of BGC’s licence conditions represents the first enforcement action.
BGC Fixed Income Solutions (previously MINT Partners Australia) is a trading name operated by BGC Securities Australia. The Business provides advice and enter into transactions for its clients in relation to corporate bonds.
The additional conditions have been imposed on AFS licence 399636.