August 31, 2020 | AtoZ Markets – BRI Ferrier, the external administrator of now-bankrupt forex broker Union Standard International Group PTY LTD (USGFX), has issued a notification informing its decision to put the broker under immediate liquidation.
This came two weeks ahead of the expiration of the extending convening period for the administrator.
Why is USGFX entering into liquidation?
As detailed in the circular sent to the broker’s clients and creditors, BRI reached this decision because of the difficulties it faced in conducting its external administration from Soe Hein Minn, the director and the majority shareholder of the broker, and his representatives.
BRI noted that they were prevented from dealing with the Company’s affairs and investigating its financial position. It specified the USGFX owner refused its requests and even court orders to provide access to “ the MT4 and MT5 platforms through which the business is conducted.”
The external administrator also raised concerns over the financial positions of the broker in an earlier circular.
“…we have on advice formed the view that there is limited value for the Company and its clients and creditors in the voluntary administration process continuing and that the most appropriate course is to put the Company into liquidation immediately on the basis that it is just and equitable to do so,” BRI noted on Monday’s circular.
USGFX faces many troubles
As AtoZ Markets reported, USGFX entered into voluntary administration on July 8, 2020, following the appointment of BRI as its administrator and the resignation of its former CEO Shay Zakhaim.
The Australian Securities and Investments Commission (ASIC) also suspended the AFS license of the broker citing the control of the company by the external administrator, which forced the broker to move its Group headquarters to London, where it is already operating a similarly named FCA-regulated subsidiary.
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