Australian regulator cancels AFS licence of USGFX
The cancellation follows the appointment of liquidators at the broker earlier in September.
The Australian Securities & Investments Commission (ASIC) today announces the cancellation of the Australian Financial Services (AFS) licence of Sydney-based retail over-the-counter derivatives issuer Union Standard International Group Pty Ltd, operating as USGFX.
The licence was cancelled on under section 915B of the Corporations Act 2001 (Cth) (Corporations Act), the regulator explains. The cancellation was announced a couple of months after ASIC suspended the license of the broker.
Although the licence is cancelled, ASIC has used its power under section 915H of the Corporations Act to allow the liquidators to conduct certain necessary activities under the licence until 18 December 2020, 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 Union Standard clients.
Union Standard has 28 days from the date of cancellation to apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
The cancellation follows the appointment of Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd as liquidators of Union Standard on September 3, 2020 by court order.