BRI Ferrier, the external administrator of now-bankrupt forex broker Union Standard International Group PTY LTD (USGFX), has issued a notification informing its decision to put the broker under immediate liquidation.
This came two weeks ahead of the expiration of the extending convening period for the administrator.
As detailed in the circular sent to the broker’s clients and creditors, BRI’s decision was propelled by the difficulties it had faced in conducting its external administration from Soe Hein Minn, the director and the majority shareholder of the broker, and his representatives.
BRI said that they were prevented from “dealing with the Company’s affairs and investigating its financial position.” It specified the USGFX owner refused its requests and even court orders to provide access to “ the MT4 and MT5 platforms through which the business is conducted.”
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The external administrator also raised concerns over the financial positions of the broker in an earlier circular.
“…we have on advice formed the view that there is limited value for the Company and its clients and creditors in the voluntary administration process continuing and that the most appropriate course is to put the Company into liquidation immediately on the basis that it is just and equitable to do so,” BRI noted on Monday’s circular.
A Troubled Broker
As Finance Magnates reported, USGFX entered into voluntary administration on 8th July 2020, following the appointment of BRI as its administrator and the resignation of its former CEO, Shay Zakhaim.
The Australian Securities and Investments Commission (ASIC) also suspended the license of the broker citing the control of the company by the external administrator, which forced the broker to move its Group headquarters to London, where it is already operating a similarly named FCA-regulated subsidiary.