ASIC has suspended the Australian financial services licence (AFS) of CFD issuer GFA Capital Markets Ltd (GFA) for five months after finding multiple client money, reporting obligation and compliance failures.
GFA's licence has been suspended from 23 July 2026 to 18 December 2026.
ASIC identified GFA's deficiencies during its industry-wide review of 52 licenced CFD issuers (26-004MR).
Following an administrative hearing, ASIC found that GFA:
- failed to properly separate and handle client money into a designated client money account
- mixed non-client money with client money
- breached reporting obligations under the ASIC Derivative Transaction Rules (Reporting) 2024
- failed to establish and maintain adequate systems and controls to comply with financial services laws
- did not have adequate financial resources, technological systems and staffing
- was likely to breach its general obligations as an AFS licensee.
The suspension has been recorded on ASIC's Professional Registers and GFA may apply to the Administrative Review Tribunal for a review of ASIC's decision.
While its licence is suspended, GFA may continue to operate for the limited purposes of:
- maintaining its Australian Financial Complaints Authority (AFCA) membership
- holding professional indemnity insurance, and
- complying with written notices issued by ASIC.
Prior to the expiration of its suspension period, GFA must demonstrate to ASIC how it has improved its compliance, client money and reporting processes. If ASIC is not satisfied that it has improved adequately, it may increase the length of the suspension or cancel GFA's license.
ASIC can suspend or cancel an AFS licence when a licensee fails to comply with its legal obligations.
Driving better outcomes for consumers of financial products and services, including high-risk products, such as CFDs, is one of ASIC's priorities for supervising market intermediaries.
ASIC will continue to take action where firms fail to meet their legal obligations, particularly in sectors involving high-risk products that can cause significant consumer harm.
Background
GFA has held AFS licence 398104 since 16 March 2011.
CFDs allow investors to speculate on the price movements of assets such as shares, currencies or commodities, without owning them.
ASIC's recent review into the Australian CFD sector
In January 2026, ASIC announced it had secured the return of nearly $40 million to more than 38,000 retail investors and driven substantial compliance improvement across Australia's CFD sector following a whole of industry review (26-004MR).
ASIC's CFD sector review achieved industry-wide improvements in target market determinations, customer onboarding processes, reporting compliance and monitoring of customer trading outcomes.
ASIC previously cancelled the AFS licence of OTC derivatives issuer Trive (26-147MR) after it ceased carrying on a financial services business, having agreed to stop onboarding new clients following ASIC's identification of serious deficiencies in some of its processes.
