The Australian Securities & Investments Commission (ASIC) has imposed additional conditions on the Australian financial services licence of Cambridge Mercantile (Australia) Pty Ltd, a subsidiary of Corpay Inc., citing ongoing compliance failures in its foreign exchange derivatives business. ASIC’s concerns include the misclassification of more than 2,800 retail clients dealing in structured FX derivatives as wholesale clients, inadequate systems and record keeping to support client classification, and delayed remediation expected to total millions of dollars. The regulator also identified shortcomings in conflicts of interest management including remuneration arrangements, weaknesses in risk management systems and resourcing for supervision and compliance, and breaches of financial resource requirements. The licence conditions require Cambridge to prepare a comprehensive remediation plan for affected clients, appoint an independent expert to report on the plan’s adequacy, and have the expert assess the operational effectiveness of remediation activities to prevent recurrence. Cambridge cooperated with ASIC and consented to the imposition of the additional licence conditions.
Australian Securities & Investments Commission 2026-02-12
Australian Securities & Investments Commission imposes additional licence conditions on Corpay subsidiary Cambridge Mercantile after FX derivatives compliance failures
ASIC has imposed additional conditions on Cambridge Mercantile (Australia) Pty Ltd's financial services licence due to compliance failures in its foreign exchange derivatives business, including client misclassification and inadequate risk management. Cambridge must prepare a remediation plan, appoint an independent expert to assess its adequacy, and ensure operational effectiveness to prevent recurrence.