ASIC secures regulatory proceedings against USGFX representatives

The Australian Securities & Investments Commission (ASIC) has announced that the Federal Court in Sydney has issues asset restraint orders against Corporate Authorised Representatives of OTC derivatives provider USGFX, or Union Standard International Group Pty Ltd.

ASIC has sought to issue the restraint orders in order to protect customers while an investigation against USGFX is underway.

The Federal Court made orders against EuropeFX and TradeFred on December 12, 2019 and December, 2019. Both companies are representatives of USGFX.

According to press, the Court issues the restraint orders against Union Standard International Group Pty Ltd on an ex parte basis. Five days later, the Court vacated the orders. In addition, USGFX gave an undertaking to the Federal Court  to keep the amount of $53,067.33 in a separate bank account, no additional asset restraint order was launched against USG.

While there are orders against EuropeFX and TradeFred, both can make payments in the ordinary business course to their customers, ASIC explains.

In addition to the orders against the companies, the Court issued orders against John Martin, who is the director of TradeFred and USGFX and any overseas travelling he my have. The director of EuropeFX, Mr. Pedro Sasso, would notify the financial regulator if he needs to leave Australia.

The investigation by ASIC is currently underway. According to the notes of the regulators, there have been no findings of contraventions of the Corporations Act against any party.

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