Finance Magnates has learned that the South African regulator, the Financial Services Board (FSB), has today reinstated the trading licence of ACM Gold and Forex Trading (ACM). One of the biggest brokers from South Africa, ACM had its trading license suspended in August after a number of its clients and introducing brokers (IB) came under scrutiny.
Irfan Pardesi, the Chairman of ACM Gold commented to Finance Magnates, “It has been an interesting ride over the last few weeks. The industry players were very supportive of us and concerned about us, I would like to thank them for all the calls and messages.
It was such an amazing learning curve for our new CEO Dano Fotiadis since the event unfolded within ten days of him assuming the position. His leadership during this process was exemplary and the fact that our existing customers continued to fund their accounts was such an incredible feeling and an example of trust they put in us.”
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The broker has been associated with Pastor Colin Davids’ Platinum Forex, which had its assets frozen due to allegedly running a multi-million rand Ponzi scheme. The FSB has also issued a warning against another one of ACM’s IBs, Go Direct Stock Market Investments, for freezing client funds and not delivering promised returns.
The brokerage stated in August that the company had a relationship with Mr. Davids in a personal capacity, not with Platinum Forex, declining to provide further details until feedback from the FSB’s investigation is received. ACM also explained in August that they were actively working with the regulator on a day-to-day basis to remedy the situation.
ACM spokeswoman Robyn Francis said, “We were certainly not aware of any Ponzi-type activity, and would never endorse it. We believe that by working with the FSB we will achieve resolution and regain our position in the market. In the interim, existing clients have access to their accounts and all funds remain secure.” Today these efforts have reached fruition.
This is not the first time that the South African regulator has suspended and then reinstated the trading licence of ACM. A few years ago the same thing happened after the FSB was unable to ascertain the full extent and validity of a complaint against the brokerage.