Bankrupt USGFX has AFS license suspended
This certainly feels like an afterthought, and we are not sure why it took them so much time to make it, but Australia financial regulator ASIC announced this morning that it is suspending the AFS license of Union Standard International Group Pty Ltd (full text below).
Union Standard operates the USGFX retail FX broker brand. The company announced 12 days ago, on July 9, that it was entering voluntary administration (i.e. bankruptcy proceedings). That was followed by the resignation of longtime USGFX CEO Shay Zakhaim, as was exclusively reported by FNG. USGFX is now being run by administrators from BRI Ferrier.
The license suspension is technically temporary, running through to September 23. However it is likely to be renewed and remain in force as long as the company remains in administration.
We would note that the bankruptcy, and license suspension, affects only the Australia company. Other USGFX family entities, including the FCA-regulated arm of the group Union Standard International Group Limited, remain unaffected.
The full text of ASIC’s statement follows:
Tuesday 21 July 2020
ASIC suspends AFS licence of Union Standard International Group
ASIC has suspended the Australian Financial Services (AFS) licence of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group Pty Ltd (Union Standard) until 23 September 2020. Union Standard operates under the brand USGFX and held AFS licence 302792.
The licence was suspended under section 915B of the Corporations Act 2001 (Cth) (Corporations Act) because Union Standard is under external administration.
On 8 July 2020, Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd were appointed as administrators of Union Standard. For further information about the administration and what this means for clients, please refer to http://briferrier.com.au/.
Although ASIC has suspended the licence, it has used its power under s915H of the Corporations Act to allow the administrators to conduct certain necessary activities under the licence during the suspension period, including to have in place a dispute resolution scheme and arrangements for compensating retail clients, to hold professional indemnity insurance, and to allow the termination of existing arrangements with current clients of Union Standard.
Union Standard may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.