Australian Regulator ASIC today suspended the Australian Financial Services (AFS) licence for Union Standard International Group Pty Ltd which operates as USGFX, until 23 September 2020.
21 July, 2020 | AtoZ Markets – Union Standard or USGFX is an FX and CFD broker. Founded in 2005, its headquarter is in Sydney, Australia. The broker offers forex, metal, energy and indices trading services. It is regulated by the Australian Securities and Investments Commission (ASIC) and has an AFS license number 302792.
ASIC Suspends AFS Licence of USGFX Until 23 September 2020
ASIC has suspended USGFX’s AFS license until 23 September 2020, due to the external administration. USGFX entered into a voluntary administration earlier this month.
Its CEO Shay Zakhaim left the company one week before voluntary administration. Andrew Cummins and Peter Krejci of BRI Ferrier are new administrators. According to the company’s statement, voluntary administration will not significantly affect the company’s other independent divisions and will continue to operate with the full support of the group.
The broker said it entered voluntary administration to facilitate restructuring. It may continue to provide financial services to its customers. Despite voluntary administration, broker stated that directors and management would continue to work with everyone involved to help the matter so that all legal requirements are met. However, ASIC has suspended the USGFX licence. ASIC said:
“ASIC has suspended the licence. But it has used its power under s915H of the Corporations Act to allow the administrators to conduct certain necessary activities under the licence during the suspension period. It includes 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 clients of Union Standard.”
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