23 July, AtoZForex.com, Vilnius – The Australian Securities & Investments Commission (ASIC) showed today how strict it can be when it comes to sanctioning, banning Andrew Jeffers from offering any financial services until May 21 2018, due to misleading statements by GTL Tradeup.
GTL TradeUp Pty Ltd (GTL) is a Sydney-based issuer of over-the-counter derivatives to retail clients and has an Australian financial services licence. Anthony Warner and Steven Kugel of CRS Warner Kugel were assigned as liquidators of GTL on 30 September 2013.
The sanctions are imposed after ASIC found that in the timeframe from March 2012 to March 2013 GTL Trade Up Pty Ltd issued three product disclosure statements (PDSs) which included materially false or misleading proclamation.
The statements in question were:
- GTL Tradeup executes a back to back transaction for each client transaction with our parent entity GTL Trading DMCC;
- GTL Tradeup’s business is based on flow, spread/commission and leverage financing margin. GTL Tradeup does not take the other side of a client’s position with the intent to benefit from a client loss;
- GTL Tradeup does not take proprietary positions based on an expectation of market movements;
- GTL Trading DMCC and GTL Trading only conduct hedging with counterparties that are considered by Standard & Poors to be of an A+ or higher credit rating;
- Steps taken on a daily basis to ensure GTL Tradeup’s financial requirements are maintained include, but are not limited to ... transferring money owed to clients to segregated client accounts if needed.
Liquidators were presented to GTL on 26 September 2013 after the broker’s main liquidity provider DMCC failed to provide available funds to GTL to meet client withdrawals. At the time GTL was owed approximately $4.35m by DMCC, however, GTL owed about $4.4m to its retail clients.
