ASIC suspends licence of USGFX
The AFS license of the broker was suspended because the firm is under administration.
The Australian Securities and Investments Commission (ASIC) today announces that it has suspended the Australian Financial Services (AFS) licence of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group Pty Ltd (Union Standard), operating as USGFX.
The license of the broker is suspended until September 23, 2020. The licence was suspended under section 915B of the Corporations Act 2001 (Cth) (Corporations Act) because Union Standard is under external administration. On 8 July 2020, Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd were appointed as administrators of Union Standard.
Although ASIC has suspended the licence, it has used its power under s915H of the Corporations Act to allow the administrators to conduct certain necessary activities under the licence during the suspension period, including to have in place a dispute resolution scheme and arrangements for compensating retail clients, to hold professional indemnity insurance, and to allow the termination of existing arrangements with current clients of Union Standard.
Union Standard may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
As FinanceFeeds has reported, back in December 2019, the Federal Court in Sydney issued interim asset restraint orders against Corporate Authorised Representatives of OTC derivatives provider Union Standard International Group Pty Ltd, trading as USGFX. ASIC sought the orders (pursuant to section 1323 of the Corporations Act) to protect customers while an investigation is underway.
On December 12, 2019, and December 17, 2019, the Court made orders against Maxi EFX Global AU Pty Ltd (trading as EuropeFX) and BrightAU Capital Pty Ltd (trading as TradeFred), both of which are representatives of USGFX.