Union Standard International Group PTY LTD (USGFX) has revealed to Finance Magnates via a statement that it has entered into voluntary administration on the 8th of July 2020.
According to the company, it has gone into voluntary administration to allow USGFX to restructure so that it can continue to provide financial services to its client. BRI Ferrier will be the administrator.
In its statement, the foreign exchange (forex) broker said that this move by the company has largely been forced by the Australian Securities and Investments Commission (ASIC), of which USGFX was regulated by.
USGFX claims ASIC harmed company’s reputation
“These actions have deeply harmed the USGFX brand and continue to consume excessive time and resources, despite no substantial allegations against USGFX being brought to court by ASIC since last December,” the company said in the statement seen by Finance Magnates.
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Despite the voluntary administration, the FX and CFD broker said that the directors and management remain committed to continue working with all of the parties involved and will assist with matters to ensure all legal requirements are satisfied.
As Finance Magnates reported, towards the end of last year, ASIC obtained interim orders from the Federal Court in Sydney freezing the assets of representatives of USGFX. This was done as part of an ongoing investigation into the broker.
However, in its response to Finance Magnates at the time, a company spokesman from USGFX said that ASIC’s media release failed to mention a number of key matters, including that on December 17, the Federal Court dismissed, effectively in full, the application against USGFX.
In doing so, the company’s statement at the time further stated that the court was highly critical of ASIC’s application against USGFX, which was not substantiated by the evidence provided to the judge.
ASIC declined to comment on the development. We will update this article if more information comes to light.