The Australian Securities and Investment Commission (ASIC) has announced that it cancels the Australian Financial Services (AFS) licence of Union Standard International Group (USGFX). According to the regulator, the licence has been revoked because the company is in liquidation.
18 September 2020 | AtoZ Markets – USGFX is an Australian Forex broker that offers FX, CFDs, and commodities trading services. The broker is based in 135 Macquarie Street, Sydney, New South Wales 2000, and was founded in 2005. It offers brokerage services in many countries around the world.
USGFX AFS Licence Cancellation Became Effective on 14 September 2020
In July 2020, ASIC suspended the USGFX’s AFS licence under Section 915B of the Corporate Act 2001. USGFX held AFS licence 302792. However, ASIC has announced today that it cancels the AFS licence of USGFX on 14 September 2020 due to the broker’s liquidation which happened two months ago.
Regarding liquidation, USGFX said, ASIC brought the broker to court in December last year, which cause significant damage to the brand. Moreover, BRI Ferrier (NSW) Pty Ltd is the administrator for the broker.
USGFX has a 28-day time limit to revoke the cancellation by applying a review to the Administrative Appeals Tribunal (AAT) regarding this matter. Despite the cancellation, the regulator said:
“ASIC has used its power under section 915H of the Corporations Act to allow the liquidators to conduct certain necessary activities under the licence until 18 December 2020, including to have in place a dispute resolution scheme and arrangements for compensating retail clients, to hold professional indemnity insurance, and to allow the termination of existing arrangements with current Union Standard clients.”
The broker had headquartered in Australia. However, due to the liquidation issues, the broker has moved its headquarters to London. USG UK has been regulated by the Financial Conduct Authority (FCA) since 2018. The board emphasized that the business in Australia and the business in the UK are independent.
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