ASIC Cancels Trive's Australian CFD Licence After Business Exit

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of contracts for difference (CFD) broker Trive Financial Services Australia Pty Ltd, effective 1 July 2026, after determining the company was no longer carrying on a financial services business in Australia.

Under Section 915B(3)(a) of the Corporations Act 2001, ASIC may suspend or cancel an AFS licence if a licensee ceases operating its financial services business. Trive may seek a review of the decision before the Administrative Review Tribunal.

The cancellation follows ASIC's industry-wide review of Australia's CFD sector, which examined 52 licensed CFD issuers. During the review, ASIC identified serious deficiencies in parts of Trive's compliance and operational processes. In response, the broker agreed to stop onboarding new clients in April 2025.

Trive has held AFS Licence No. 424122 since July 2012. The company was originally incorporated as ILQ Australia Pty Ltd, later rebranded as Fairmarkets Trading Pty Ltd, before adopting the Trive name following its integration into the global Trive Group.

ASIC's decision comes amid broader regulatory scrutiny of Australia's retail CFD market. Earlier this year, the regulator announced that its sector-wide review resulted in nearly AU$40 million being returned to more than 38,000 retail investors and prompted significant improvements in firms' target market determinations, customer onboarding procedures, compliance reporting, and monitoring of client trading outcomes.

According to ASIC, retail CFD trading remains a high-risk activity. The regulator reported that 68% of Australian retail CFD traders lost money in 2024, with combined losses exceeding AU$458 million, including approximately AU$73 million in fees.

The licence cancellation reflects ASIC's continued focus on strengthening oversight of high-risk retail investment products and ensuring licensed firms maintain active, compliant operations.