ASIC suspends AFSL of GFA Capital Markets

ASIC has suspended the Australian financial services licence (AFSL) of GFA Capital Markets (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.

GFA is a contracts for difference (CFD) issuer. CFDs allow investors to speculate on the price movements of assets such as shares, currencies or commodities, without owning them.

ASIC identified GFA's deficiencies during its industry-wide review of 52 licenced CFD issuers.

It found the firm failed to properly separate and handle client money into a designated client money account, mixed non-client money with client money, breached reporting obligations, 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, and was likely to breach its general obligations as an AFS licensee.

ASIC said GFA may apply to the Administrative Review Tribunal for a review of the decision.

While its licence is suspended, GFA can 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," ASIC said.

"If ASIC is not satisfied that it has improved adequately, it may increase the length of the suspension or cancel GFA's license."

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.

ASIC's CFD sector review achieved industry-wide improvements in target market determinations, customer onboarding processes, reporting compliance and monitoring of customer trading outcomes, the regulator said.