Australia Securities & Investment Commission

Tuesday 13 February 2018 18-036MR ASIC obtains interim injunctions and warns investors against AGM Markets, OT Markets and Ozifin (Trade Financial) ASIC warns the public not to deal with any of the following entities in relation to trading in margin FX contracts for difference (CFDs) and bitcoin CFDs: Name Registered business names Address Websites AGM Markets Pty Ltd ACN 158 706 766 (AGM Markets) (AFSL No 422662) OT Markets Trading Tradefinancial Trading Alpha Trade Group First Index Level 1, 189-191 Balaclava Road, Caulfield North VIC OT Markets Pty Ltd ACN 621 714 181 (OT Markets) (AR No 1258906) OT Capital Australia OT Capital Investments OT Capital.com OT Markets Office 9G, 242 Hawthorn Road, Caulfield North VIC otcapital.com otcapital(dot)net(dot)au otcapital(dot)info Ozifin Tech Pty Ltd ACN 618 038 396 (Ozifin) (AR No 1256645) Tradefinancial Trader Q 17 Milford Street, Bentleigh East VIC tradefinancial.com.au ASIC is concerned that these entities are offering personal advice to retail investors which are not authorised by AGM Markets’ Australian financial services licence (AFSL), and that these entities are otherwise engaging in conduct that is misleading or deceptive, and/or unconscionable. ASIC is warning that potential investors are likely to suffer detriment as a result of the conduct of these entities. ASIC is also satisfied that it is in the public interest to warn the public about the conduct of these entities. On 12 February 2018, ASIC obtained interim orders in the Federal Court of Australia against AGM Markets, OT Markets and Ozifin that: restrain the entities from removing their assets from Australia, disposing of their property, and to freeze monies in two specified bank accounts; and preventing two individuals involved with AGM Markets and OT Markets from leaving Australia without the consent of the Court. ASIC sought the injunctions to protect investor funds while an ASIC investigation is continuing. The matter has been listed for a further hearing on 15 February 2018 at 9:30am. To report information to ASIC on AGM Markets, OT Markets and/or Ozifin, please contact ASIC on 1300 300 630 or go to www.asic.gov.au/complain. This media release is a notice issued under subsection 12GLC(1) of the Australian Securities and Investments Commission Act 2001. ASIC strongly encourages the public to refer to ASIC’s Moneysmart website for further information about margin FX trading, contracts for difference, and bitcoin and other virtual currencies. Editor's note: On 15 February 2018, a further hearing was set for 9:30am on 9 March 2018. Editor's note 2: On 9 March 2018, ASIC obtained interim orders in the Federal Court of Australia against AGM Markets, OT Markets and Ozifin that were additional to the orders issued on 12 February 2018 and had the effect of:　 freezing monies held in an additional specified bank account.　 extend the period preventing a director of AGM Markets from leaving Australia without the consent of the Court to 18 April 2018. 　 vacating the orders previously made preventing the director of OT Markets from leaving Australia.　 ASIC has filed an application for the appointment of Receivers and Managers to each of AGM Markets, OT Markets and Ozifin which has been listed for hearing on 1 and 2 May 2018. Editor's note 3:　 ASIC has amended its application to add an application for the appointment of Provisional Liquidators to each of AGM Markets, OT Markets and Ozifin.　 The hearing dates of 1 and 2 May 2018 for ASIC's application have been vacated and relisted for hearing on 1 June 2018. Editor's note 4:　 On 16 April 2018, AGM Markets notified its corporate authorised representatives (CARs), OT Markets and Ozifin Tech, that owing to ASIC’s investigation into the respective companies conduct, and the determination that each had provided unlicensed personal advice to customers, AGM was terminating its respective CAR agreements with OT Markets and Ozifin Tech effective as at that date. AGM Markets continues to operate under the business names Alpha Trade Group and First Index. The ASIC investigation concerning AGM Markets, OT Markets and Ozifin Tech is on-going. Editor's note 5: The hearing date of 1 June 2018 for ASIC's application has been vacated and relisted for hearing on 24 July 2018. Editor's note 6: The interim hearing of ASIC's application for the appointment of a provisional liquidator to each of AGM Markets Pty Ltd, OT Markets Pty Ltd and Ozifin Tech Pty Ltd was heard by his honour Justice Beach on Tuesday, 24 July 2018. His honour reserved judgment on that occasion. Editor's note 7: On 27 July 2018, his honour Justice Beach dismissed ASIC’s interim application for the appointment of provisional liquidator or interim receiver to each of AGM Markets Pty Ltd, OT Markets Pty Ltd and Ozifin Tech Pty Ltd. The matter is listed for a further case management hearing at 9.30 am on 5 October 2018. Editor's note 8: On 4 October 2018, further orders were made by his honour Justice Beach as to the timetable of the civil proceeding in the Federal Court of Australia. The next case management hearing in this matter is on 9.30am on 22 February 2019. The matter has also been listed for hearing at 10.15am on 24 June 2019. Editor's note 9: On 24 June 2019, the hearing listed to commence on that day for an estimate of five days was vacated. The matter has been listed for a further case management hearing at 10.00am on 30 July 2019. Editor's note 10: On 29 July 2019, further orders were made as to timetabling of the matter and the case management hearing at 10.00am on 30 July 2019 was vacated. The matter has been re-fixed for hearing for 10 days in the Federal Court of Australia, commencing on 1 October 2019. Editor's note 11: On 7 October 2019, his honour Justice Beach reserved judgement following the hearing on liability. Editor's note 12: On 11 October 2019, the Federal Court of Australia ordered that AGM Markets Pty Ltd, OT Markets Pty Ltd and Ozifin Tech Pty Ltd be wound up on just and equitable grounds. His Honour also ordered that separate liquidators be appointed to each of the three entities. More here. Editor's note 13: On 17 February 2020, the Court vacated the freezing orders obtained by ASIC against AGM Markets, OT Markets and Ozifin. The orders were vacated following the legal representatives for the liquidators of each of AGM Markets, OT Markets and Ozifin providing an undertaking that, except for properly incurred remuneration and expenses in the ordinary course of the relevant liquidation, they will not disburse any funds or other property held by or on behalf of the defendant of which they are liquidator (or joint and several liquidators, as the case may be) without further direction of the Court. Download a copy of the Orders On 26 February 2020, Justice Beach handed down his reasons for judgement on liability. See 20-048MR for further detail.