The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial service licence (AFSL) of LSG Group Pty Ltd, following an investigation. Formerly known as NZ Global Financial Trading, Easy Capital Global and AIFA Global, the firm operated two websites (www.nzgft.com.au and www.nzgft.com – the latter a Chinese website).
Among the findings of ASIC is that the firm made misleading or deceptive representations on its Australian website concerning products it offered, including a “Guaranteed Capital with Bonus Scheme Plan” and a “Cash Dividend Plan”. It also made misleading or deceptive representations on its Chinese website including a promotion titled “Win Double Profit for Expert Advisors Real Account. Expert Advisors masters can get $1 million US dollar”.
Additionally found by ASIC is that the brokerage also failed to do all things necessary to conduct financial services in an efficient, honest and fair manner in relation to a deposit of US$100,000 received from an overseas client.
“It is vital that AFSL holders comply with their reporting requirements to ensure that creditors and investors who use financial reports, have the proper information to make informed decisions.” ASIC Commissioner Greg Tanzer said.
“Licensees will not be absolved of their obligations, including those relating to previous or ongoing breaches by a change in control or ownership. Any prospective new owners and managers should ensure they conduct adequate due diligence before acquiring a licence and assume responsibility of the licensee’s obligations.”