The Australian Securities and Investments Commission cancelled the Australian Financial Services license held by Trive Financial Services Australia Pty Ltd after determining the company had stopped carrying on a financial services business in Australia. The regulator exercised its authority under Australia's Corporations Act, which permits ASIC to suspend or cancel an AFS license if the holder ceases to conduct the activities for which the license was granted. The company agreed to stop onboarding new Australian clients in April 2025 after ASIC identified serious deficiencies in some of its processes during an industry-wide review of the domestic CFD market that examined 52 licensed CFD issuers between October 2024 and December 2025.
ASIC Cancels Trive License Under Corporations Act Authority
ASIC cancelled the license because Trive was no longer operating a licensed financial services business in Australia. The Australian entity held AFS licence No. 424122 since July 24, 2012. ASIC records show the business was incorporated on June 25, 2012, as ILQ Australia Pty Ltd before changing its name to Fairmarkets Trading Pty Ltd in July 2018. The company adopted the name Trive Financial Services Australia Pty Ltd in December 2023 after becoming part of the Trive group.
The cancellation does not carry the same implication as a misconduct case. ASIC removed Trive's local authorization because the company was no longer operating a financial services business in Australia, not because the regulator alleged customer harm or market abuse.
ASIC CFD Review Returned AU$40 Million to 38,000 Investors
The cancellation follows ASIC's completion of one of its largest examinations of the domestic CFD market. Between October 2024 and December 2025, the regulator reviewed 52 licensed CFD issuers to assess how they were distributing high-risk leveraged trading products to retail investors. The review uncovered widespread shortcomings across the sector in product governance, client onboarding procedures, regulatory reporting and ongoing monitoring of customer trading outcomes.
ASIC said its intervention resulted in nearly AU$40 million (about US$26 million) being returned to more than 38,000 retail investors. The review prompted significant compliance changes across the industry. According to the regulator, 39 CFD issuers revised their target market determinations, 44 improved their client onboarding questionnaires, 42 strengthened monitoring of client trading behaviour and 48 corrected deficiencies in over-the-counter derivatives reporting after ASIC identified more than 70 million erroneous reports.
Australia Implements Stricter CFD Regulations
Trive's exit occurs within a more restrictive regulatory environment for retail contracts for differences in Australia. Over the past several years, ASIC has introduced product intervention measures aimed at reducing losses among retail traders. Those measures include leverage limits for retail clients, mandatory negative balance protection, standardized risk warnings, and restrictions on promotional incentives offered by CFD providers.
The reforms were designed to strengthen consumer protection in one of the world's largest regulated retail derivatives markets. They also raised compliance costs and reduced profit margins for brokers that primarily serve retail traders. The tighter framework has prompted several CFD providers to reassess their presence in Australia. Some firms have scaled back operations, while others have shifted their strategic focus toward regions where regulatory requirements differ or where growth opportunities are stronger.
Trive Operates Through Multiple International Entities
Holding an Australian financial services license involves ongoing operational and regulatory commitments regardless of whether a firm is actively onboarding clients. License holders are expected to maintain governance structures, compliance personnel, financial reporting systems, and dispute resolution arrangements while continuing to meet ASIC's expectations.
The cancellation applies to Trive's Australian licensed entity and does not necessarily reflect the company's broader international operations. Trive operates through multiple regulated entities across different jurisdictions, and the loss of an Australian license does not automatically indicate that the group is reducing its global business. The move may reflect a decision to concentrate resources in markets where the company continues to operate or sees stronger growth prospects. Many global CFD providers have focused more heavily on regions including the Middle East, Latin America, Africa, and parts of Asia as regulatory requirements and competitive dynamics have evolved across jurisdictions.
For ASIC, the outcome is administrative rather than punitive. The regulator's action removes a license from a company that is no longer conducting financial services business in Australia, keeping the register of licensed firms aligned with entities that are actively operating in the market. The decision highlights ASIC's continued willingness to review dormant license holders and use its statutory powers to remove firms that no longer require authorization to provide financial services in Australia.
FAQ
Why did ASIC cancel Trive's Australian financial services license?
ASIC cancelled Trive Financial Services Australia's license because the company had stopped carrying on a financial services business in Australia. The company agreed to stop onboarding new Australian clients in April 2025 after ASIC identified serious deficiencies in some of its processes during an industry-wide review.
What did ASIC's CFD market review uncover between October 2024 and December 2025?
ASIC reviewed 52 licensed CFD issuers and uncovered widespread shortcomings in product governance, client onboarding procedures, regulatory reporting and ongoing monitoring of customer trading outcomes. The review resulted in nearly AU$40 million being returned to more than 38,000 retail investors.
How long did Trive hold its Australian financial services license?
Trive's Australian entity held AFS licence No. 424122 since July 24, 2012. The business was originally incorporated as ILQ Australia Pty Ltd on June 25, 2012, changed its name to Fairmarkets Trading Pty Ltd in July 2018, and adopted the name Trive Financial Services Australia Pty Ltd in December 2023.
