Who has topped Australia in terms of the most complaints received for a derivatives or securities provider? According to data provided by the Australian Financial Complaints Authority (AFCA), that title goes to none other than KP International Group Australia.
According to AFCA’s Datacube, for the period ranging from the 1st of July 2019 until the 31st of December 2019, KP International Group Australia Pty Ltd, a managed discretionary account operator, received the most complaints from Australian consumers – topping the list with 245 complaints, with 0 resolutions.
Not far behind KP International is Forex Financial Services Pty Ltd, a foreign exchange (forex) dealer, which has managed to accumulate 162 complaints and no resolutions.
The issue with Forex Financial Services seems to be a bit more complicated. As Finance Magnates reported, AFCA previously warned that it was receiving a high volume of complaints regarding the FX dealer.
However, the company responded to the complaints by stating that a clone firm had fraudulently copied its company name and Australian license details and is accepting customers’ money through its online trading website. The matter was referred to the Australian Securities and Investments Commission (ASIC).
Speaking to Finance Magnates, Stephen Andrews, Director at IFS Markets, said: “We want to reiterate that none of those complaints reported by AFCA, on either recent report, was from our actual clients. There was a clone website using our details to attract individuals to a scam operation, using our license information and a similar name.”
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“All of these 457 complaints, including the newer 162 cases in the most report, originated from residents of China, and all have already been closed by AFCA, citing “Outside AFCA rules.” according to the official AFCA datacube report for these periods. All were complaining about the same website that was not ever owned or controlled by Forex Financial Services Pty Ltd and were requesting their funds to be returned to them.
“In the report, we have 0 resolutions to these complaints because we cannot resolve something that is not a real complaint, nor can return funds to individuals that never funded with our firm in the first place. The reality is, none of the complaints during the previous two reporting periods was from our actual clients, and it’s worth noting that Forex Financial Services Pty Ltd received 0 complaints from our real clients during these two periods. ”
According to AFCA, firms that have received four or more complaints during the selected period appear in the AFCA Datacube, which displays the number of complaints AFCA received about each firm, their business size, and statistics about how they handled and resolved complaints.
Well-known brokers make AFCA’s list
Coming in fourth, fifth, and sixth place in terms of the most complaints received is CMC Markets Stockbroking Limited, Plus500au Pty Ltd, and IG Markets Limited, respectively, each having 23, 22, and 19 complaints.
Also making the list is forex broker ACY Securities Pty Ltd, with 11 complaints, Pepperstone Group Limited with ten complaints and Forex Capital Trading, which also has received ten complaints from Aussie residents.