GFA Capital Markets ASIC suspension will run for five months after the regulator found failures in client money handling, reporting and compliance.
The Australian Securities and Investments Commission suspended the Australian financial services license of GFA Capital Markets Ltd from July 23 to December 18, 2026. However, the firm can still carry out limited administrative tasks during that period. ASIC said it made the decision after an administrative hearing and published the outcome on Thursday.
ASIC said GFA failed to place and handle client money in a designated client money account. The regulator also said the company mixed non-client funds with client money. Meanwhile, ASIC did not say how much money was involved or whether clients suffered losses.
GFA Capital Markets ASIC Suspension Details
ASIC said GFA also breached the ASIC Derivative Transaction Rules (Reporting) 2024. In addition, the regulator found that the company lacked adequate systems and controls to meet financial services laws. ASIC also identified weaknesses in the firm’s financial resources, technology and staffing.
Because of those findings, ASIC said GFA was likely to breach its general obligations as an AFS licensee. While the suspension is in place, the company may keep its membership of the Australian Financial Complaints Authority and maintain professional indemnity insurance. It may also act on written notices from ASIC. However, those exceptions do not allow GFA to run its normal financial services business.
Wider ASIC Review of CFD Issuers
ASIC said it found GFA’s deficiencies during a review of 52 licensed CFD issuers carried out between October 2024 and December 2025. That review led to almost A$40 million in refunds for more than 38,000 retail investors. The regulator also said more than half of the sector breached its product intervention order by offering margin discounts to retail clients with opposing positions.
In the same review, ASIC identified more than 70 million erroneous derivative transaction reports. As a result, 48 issuers changed their reporting processes, 46 revised website content, 44 changed onboarding questionnaires and 39 amended target markets. ASIC also said 68% of Australian retail CFD investors lost money in the 2024 financial year, with combined losses above A$458 million, including A$73 million in fees.
GFA has held AFS license 398104 since March 16, 2011, and its registered business location is in Sydney. The company may ask the Administrative Review Tribunal to review the decision, and before December 18 it must show ASIC improvements in its client money, reporting and compliance processes.
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Source: Finance Magnates
