Why is USGFX Vanuatu Slow in Refunding Australian Clients?

Why is USGFX Vanuatu slow in refunding Australian clients? As against the previously decided deadline of 2020-end, the brokerage is now planning to issue a full refund by March.

December 4, 2020, | AtoZ Markets – The offshore arm of Union Standard International Group (USGFX) in Vanuatu on Friday informed its clients that it will be unable to process client withdrawals within the deadline of 2020.

USGFX Vanuatu states the reason for the delay in refunding Aussie clients

According to the announcement, USGFX cited restrictions imposed by the regulator on business as the reason for the delay in refunding all the stuck client funds.

“USG is committed to processing customer withdrawals, but due to regulatory restrictions, the processing time for withdrawals is slower than expected at the time, so not all customers can receive full withdrawals before the end of this year,” the announcement reads.

However, while it remains unknown whether USGFX Vanuatu is currently facing trouble, the brokerage firm has confirmed that these funds are linked to its troubled Australian entity.

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“USG as a group is dedicated to our efforts in dealing with USG AU liquidation situation, and there’s no trouble in USG Vanuatu,” a USGFX spokesperson said.

The brokerage further explained that today's announcement was addressed to the clients who were transferred from the Australian entity to the Vanuatu entity.

“Many of our Vanuatu clients were transferred from USGFX AU. Some of them still have money held by BRI and ASIC. To respond to their loyalty and confidence in us, we’re making spontaneous statements to let them know the liquidation process,” the spokesperson added.

Moreover, today's announcement further detailed that a vast majority of clients will receive their funds sooner, over 50% of the withdrawals of its clients have been processed.

USGFX struggling to survive despite many woes

AtoZ Markets previously reported that the Australian Federal Court ruled to liquidate Union Standard International Group Pty Limited. Recall that the company agreed to bankruptcy proceedings on July 8, 2020. After that, the director of the Australian broker resigned, and the ASIC’s Securities and Investment Commission suspended the company’s license.

Related: USGFX Owner Hein Min Soe Resigns as Director of UK Company

However, despite these many woes, the brokerage is persevering remains committed to retaining its brand and global operations. After making the decision on August 15, the board of USG UK announced last month that the headquarters of the brokerage will be relocated to London following the liquidation of USGFX in Australia.

Read also: USGFX Begins Operations in South Africa With FSCA License

This move is a clear indication that the new headquarters wants to cut ties with its controversial owner and make decisions independently.

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