ASIC Suspends CFD issuer GFA Capital Markets' AFS Licence Over Client Money and Compliance Failures

The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services (AFS) licence of CFD issuer GFA Capital Markets Ltd for five months after identifying multiple breaches relating to client money, reporting obligations and compliance controls.

The suspension, effective from 23 July to 18 December 2026, follows ASIC's industry-wide review of 52 licensed CFD issuers. The regulator found that GFA failed to properly segregate client money, mixed client and non-client funds, breached derivative transaction reporting requirements, and lacked adequate systems, staffing, financial resources and compliance controls to meet its legal obligations.

During the suspension period, GFA may only maintain its Australian Financial Complaints Authority (AFCA) membership, hold professional indemnity insurance and comply with ASIC notices. Before the suspension expires, the firm must demonstrate that it has strengthened its client money management, reporting processes and compliance framework. ASIC said it may extend the suspension or cancel the licence if the improvements are deemed insufficient.

The enforcement action forms part of ASIC's broader efforts to strengthen oversight of Australia's CFD sector and improve consumer protection in the high-risk derivatives market.