13 August 2015, AtoZ Forex, Amsterdam – It has come to our attention that South African Watchdog has provisionally withdrawn the FSP license of one of the largest Forex and CFDs brokers in the world and the largest African Broker, ACM Gold, with its trade name ACM Gold and Forex Trading (PTY) based in Johannesburg , South Africa.
ACM Gold and Forex Trading PTY has been operating in South Africa with their Financial Services Provider License (FSP- 26164) which has been Provisionally Withdrawn by the strict local regulator, Financial Services Board (FSB) of South Africa effective as of the 5th of August 2015 with its unchanged status since the last update
What does Provisionally Withdrawn ACM Gold FSP License mean?
Until a public announcement is made, the current status does not enforce the Local Financial Markets Giant to seize their operations in South Africa. However, based on the investigation carried out by the FSB ACM Gold and Trading (PTY) LTD can not on-board new clients, but continue operations with their current existing clients as usual.
Will ACM Gold lose its FSP license?
This question could only be answered once the FSB investigation is concluded. May the regulator’s investigation team conclude their findings with a verdict that the ACM Gold is not complying the FSB legislation and that they have committed an offense, only then ACM Gold might face losing their FSP license.
Even in case of faulty findings from FSB, ACM Gold still would get the right to appeal. And the final conclusion would be based on the results of the appeal.
Reason behind investigation:
Although there isn’t any official announcement from the FSB about their License Withdrawal, there are rumours that the Provisional License Withdrawal is not due to any wrongdoing of the company but due to a partner (IB) offering unrealistic returns with his automated trading system (EA).
A representative from ACM Gold commented on the given subject as the following:
“Please note ACM Gold is working forward to resolve the issue as soon as possible. The license status will be updated soon. Meanwhile, we can assure you that all customer funds are safe and secure, and we are doing everything we can to accelerate resolution with the FSB.”