USGFX clients can continue to file complaints with Australian Financial Complaints Authority
At this time, however, AFCA has paused processing complaints against insolvent firms.
Shortly after the Australian Securities & Investments Commission announced the suspension of the license of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group Pty Ltd, operating as USGFX, the Australian Financial Complaints Authority (AFCA) has provided an update to clients of the broker.
At this time, despite the suspension of its license and status, Union Standard International Group Pty Ltd is a current member of AFCA. This means that consumers can continue to lodge complaints about the actions of Union Standard International Group Pty Ltd.
However, at this time AFCA has paused processing complaints against insolvent firms until there is certainty provided by the Government about the scope and timing of a compensation scheme of last resort.
On July 8, 2020, Peter Paul Krejci & Andrew John Cummins of BRI Ferrier were appointed as administrators of Union Standard International Group Pty Ltd. The licence of the broker was suspended under section 915B of the Corporations Act 2001 (Cth) (Corporations Act) because Union Standard is under external administration.
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.
As FinanceFeeds reported in December 2019, the Federal Court in Sydney issued interim asset restraint orders against Corporate Authorised Representatives of 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.
