The Vanuatu-based entity of FX broker USGFX today said that BRI Ferrier, the liquidator of its ASIC-regulated brand (Union Standard International Group Pty Ltd), has sought to seize its assets outside of Australia.
In an update to its clients, the now-bankrupt forex broker accused BRI of abusing their power after they instructed First Bank in Puerto Rico to freeze accounts of USG Global (Union Standard International Group Ltd).
“Not only did this behavior cause negative impacts on the progress of USG Global assisting with the withdrawal requests made to USGFX but also severely affected USG Global clients’ rights,” the parent entity added.
Despite being owned by the same person, the company reiterated that its Vanuatu brand is a separate legal entity that has been operating independently of the brokerage business currently under liquidation in Australia.
Additionally, USG Group claims that although it has no control over the liquidation process, it has been processing withdrawal requests for USGFX clients who transferred their accounts to its offshore company.
The brokerage added that it is still determined to retain its brand and global operations, regardless of its current situation and “rather than wasting money and resources on war of words.”
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BRI Blames Min Soe for Dilemmas
In August, the board of USGFX announced that the headquarters of the brokerage were moved from Australia to London. Until recently, the UK and Australian entities that shared the same directors with the UK subsidiary is majority-owned by Myanmar-based, Hein Min Soe, who was also a director of the Australian business. However, Hien Min Soe stepped down in October as a director of the brokerage’s United Kingdom-based business.
The administrator has repeatedly blamed the Burmese owner of USGFX for the company’s troubles and dilemmas.
The Australian arm of USGFX has collapsed into administration amid an investigation by the corporate watchdog into its trading platforms. The cancellation of USGFXs AFS licence followed on from the broker being ordered to be wound up by the Federal Court of Australia in August.
In securing the orders, ASIC told the court it had concerns that USG and its two representatives had engaged in “dishonest and unfair conduct in the course of carrying on its financial services business in Australia,” including preventing customers from withdrawing money from their accounts.
The UK operation, USG UK, which is regulated by the FCA is not affected by this situation and continues to trade as normal.
Having opened its doors for business more than a decade ago, USGFx is one of the oldest foreign exchange brokers in the Pacific Rim. The company has its headquarters in Sydney, but with branches in Auckland, Shanghai and Hong Kong.