ASIC has banned former Forex Capital Trading account manager Steven Marsh from providing financial services for three years over engaging in unconscientious conduct.
29 June, 2020 | AtoZ Markets – Forex Capital Trading (Forex CT) is a retail OTC derivative issuer. Australian Securities and Investments Commission (ASIC) cancelled its AFS (Australian Financial Services) license earlier this month. ASIC also found that Forex CT’s financial services business model ignores the critical obligations of AFS licensees. However, Forex CT can continue until the end of July 2020 to facilitate the orderly closure of existing client positions.
ASIC Bans Former Forex CT Employee for 3 Years
ASIC today announced that it imposes a three-year ban on Steven Marsh, a former employee of Forex Capital Trading from providing financial services.
According to the ASIC, he made misleading statements to customers, uses aggressive marketing strategies and unfair transactions, recommends deposits to clients, delays or cancels the withdrawal of own funds from their accounts. ASIC also said:
“Forex CT employed Mr Marsh as an account manager between 19 February 2018 and 20 March 2019. During this period, Mr Marsh engaged with clients to trade in contracts-for-difference (CFDs) and margin foreign exchange contracts (FX Contracts).”
The regulator has also determined that:
- Mr. Marsh does not comply with the Financial Services Act.
- He doesn’t have inadequate training or inability to provide financial services.
- He is not the right person to provide financial services.
Australian regulator found that Marsh was not well-trained, competitive, and did not provide customers with general advice warnings. In addition, Marsh gave personal advice to customers. However, Marsh can appeal to the Administrative Appeals Tribunal for a review of this decision. The regulator said.
“The size of the Australian market for OTC retail derivatives has grown considerably over recent years. With that growth, there has been a dramatic increase in complaints to ASIC in relation to conduct within the OTC retail derivatives market. ASIC has and will continue to take strong regulatory action to protect consumers of these products.”
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