ASIC Cancels AFS Licence of USGFX after Entering Liquidation
- ASIC cancelled the FX broker’s licence on the 14th of September 2020.
The Australian Securities and Investments Commission (ASIC) announced this Friday that it has cancelled the Australian Financial Services (AFS) licence of Union Standard International Group Pty Ltd, which operates under the brand USGFX.
The cancellation of USGFX’s AFS licence follows on from the foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term) broker being ordered to enter into liquidation by the Federal Court of Australia earlier this month.
According to ASIC’s statement today, the broker’s licence (AFS licence 302792) was cancelled on 14th September 2020 because the company has entered into liquidation, under section 915B of the Corporations Act 2001 (Cth) (Corporations Act).
Despite the cancellation, the Australian regulator outlined today that it will allow the liquidators: Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd, to conduct certain necessary activities under the AFS licence until 18th December 2020.
This includes having a dispute resolution scheme in place, and arrangements for compensating retail clients. Additionally, the liquidators will continue to hold professional indemnity insurance and be able to terminate existing arrangements with current clients.
In its statement today, the Aussie watchdog highlights that the Australian-based FX broker has 28 days from the cancellation date to apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
USGFX Troubles
USGFX is the Australian entity of Union Standard International Group Holdings (USG). In July, Finance Magnates broke the news that USGFX had entered into voluntary administration, claiming that ASIC’s attacks on the company had damaged its reputation.
Namely, the broker claimed that ASIC had brought legal actions against the company “despite no substantial allegations against USGFX being brought to court by ASIC since last December”, the broker said at the time.
Before it went into voluntary administration in July, the Group had its headquarters in Australia. However, as a result of USGFX’s issues, the Group has moved its headquarters to London, where it has an entity regulated by the Financial Conduct Authority (FCA).
As Finance Magnates reported, Krejci and Cummins previously alerted shareholders and creditors that they would be putting the broker into liquidation following difficulties they faced in conducting their external administration from Soe Hein Minn, the director and the majority shareholder of the broker, and his representatives.
The Australian Securities and Investments Commission (ASIC) announced this Friday that it has cancelled the Australian Financial Services (AFS) licence of Union Standard International Group Pty Ltd, which operates under the brand USGFX.
The cancellation of USGFX’s AFS licence follows on from the foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term) broker being ordered to enter into liquidation by the Federal Court of Australia earlier this month.
According to ASIC’s statement today, the broker’s licence (AFS licence 302792) was cancelled on 14th September 2020 because the company has entered into liquidation, under section 915B of the Corporations Act 2001 (Cth) (Corporations Act).
Despite the cancellation, the Australian regulator outlined today that it will allow the liquidators: Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd, to conduct certain necessary activities under the AFS licence until 18th December 2020.
This includes having a dispute resolution scheme in place, and arrangements for compensating retail clients. Additionally, the liquidators will continue to hold professional indemnity insurance and be able to terminate existing arrangements with current clients.
In its statement today, the Aussie watchdog highlights that the Australian-based FX broker has 28 days from the cancellation date to apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
USGFX Troubles
USGFX is the Australian entity of Union Standard International Group Holdings (USG). In July, Finance Magnates broke the news that USGFX had entered into voluntary administration, claiming that ASIC’s attacks on the company had damaged its reputation.
Namely, the broker claimed that ASIC had brought legal actions against the company “despite no substantial allegations against USGFX being brought to court by ASIC since last December”, the broker said at the time.
Before it went into voluntary administration in July, the Group had its headquarters in Australia. However, as a result of USGFX’s issues, the Group has moved its headquarters to London, where it has an entity regulated by the Financial Conduct Authority (FCA).
As Finance Magnates reported, Krejci and Cummins previously alerted shareholders and creditors that they would be putting the broker into liquidation following difficulties they faced in conducting their external administration from Soe Hein Minn, the director and the majority shareholder of the broker, and his representatives.