Australian regulator ASIC announced cancelling the AFS licence of OTC derivative issuer Forex Capital Trading Pty Ltd.
Forex CT provided clients with CFDs and margin foreign exchange contracts trading services.
ASIC investigation found that the financial services provider has deficiency in ethical values and its business model disregarded key obligations leading to unconscionable conduct, misleading customers and a failure to manage conflicts of interest. Moreover, Forex CT failed to ensure its representatives were adequately trained and complied with financial services laws.
The Australian watchdog discovered a number of Forex CT clients suffered significant losses in the size of hundreds of thousands of dollars, including from their superannuation accounts, from investing in these products.
Forex CT’s AFS licence will continue to end of July to allow setting a dispute resolution scheme in place and to facilitate the orderly closure of existing client positions. The company will be not permitted to accept new clients.
The company had a notice on its Australian website https://www.forexct.com.au/ that form 28 May 2020 no new clients can be accepted and advising clients to close all existing positions before 26 June 2020. However, it’s offshore website https://www.forexct.com/ is operational and it appears that the company will continue to operate as an offshore broker.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.