The Securities and Exchange Commission (SEC) has ordered the revocation of the derivatives business licence of Asia Wealth Securities (AWS) due to its inability to maintain qualifications as a derivatives business operator in accordance with the specified laws.
The regulator found that AWS was unable to qualify as a futures business licensee since the company is unable to maintain net capital rules (NC) as specified by the SEC since Nov 14, 2022.
AWS has not been able to solve the problem of maintaining NC, which is non-compliant with the rules regarding permission to conduct a derivatives business.
As a result, the company was disqualified as a legal derivatives business operator, the regulator said in a statement.
The SEC has therefore revoked the company's derivatives business licence (advisory and derivatives fund manager) effective July 24.
"The derivatives business operator must maintain the qualifications required by law throughout the period of derivatives business operation as well as being ready to support the business operations for the provision of services based on the principle of the best interests of investors," it added.