Forex Capital Trading faces legal troubles with ASIC

March 21, 2019, | AtoZ Markets - An Australian court following the ASIC investigation issued an order prohibiting Forex Capital Trading Pty Ltd to export its funds abroad and manage its assets, including clients' money.

The Australian financial authority tightens its grip in the market

In recent years, the Australian Securities and Investments Commission (ASIC) has continued to tighten control over misconduct in the retail forex sector. It is becoming increasingly difficult for brokers to obtain a license for Australian financial services (AFS). The ASIC announced this Thursday that it appealed to the Federal Court of Melbourne. The reason was the investigation of the activities of Forex Capital Trading Pty Ltd, an over-the-counter issuer of derivatives.

The Australian authorities freeze broker's funds

Earlier, on March 12, 2019, in accordance with the temporary orders received by the ASIC ex-parte in the Federal Court, it was forbidden for Forex Capital Trading to export its assets from Australia. Also, the court limited the right of the broker to dispose of their property and the funds in the company's bank account were frozen. The local authorities also prevented the sole director of the company, Shlomi Yoshai, from leaving Australia.

Forex Capital Trading fate stays unknown

The case returned to court on March 18 and 19, 2019. The Australian financial authority demanded an extension of the temporary order, the court, in its turn, rejected the extension of the freezing orders. However, the decree not to allow Mr. Yoshay to leave Australia remained in force. The head of the company was banned from traveling abroad until 5:00 pm on Monday, March 25, 2019. The court also banned Forex Capital Trading from transferring any property, including customer money, abroad. The next hearing on resolving the issue between the ASIC and ForexCT is scheduled for Monday, May 20 of this year.

Forex Capital Trading in a brief

ForexCT (Forex Capital Trading) is an Australian CFD Forex broker, located in Melbourne. The brokerage company enables its users to trade through its mobile and web platforms. The company is owned by Forex Capital Trading Pty Ltd. The broker is licensed and regulated by the ASIC. In its statement, the Australian financial regulator has not provided any details on the ForexCT case. The ASIC outlined  that they are looking for temporary orders against the company "as part of their actions to protect investors' funds."

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