FNG Exclusive… FNG has learned that Retail FX and CFD brokerage group USGFX has set up a new subsidiary in South Africa called Union Standard International Group (Pty) Ltd. The new company has applied for and been granted an FSP (Financial Service Provider) license by South African financial regulator FSCA.

The license is a “Category 1” license, enabling USGFX-South Africa to engage in transactions in derivative instruments as an intermediary.

The license was formally granted on October 6.

We have also learned that USGFX has hired Elisha Lurie to head its new South Africa operation. Mr. Lurie has worked in Johannesburg in the investment management industry for the past 20 years at firms including Appleton Group, Imara S.P. Reid, Cedar Lane, Capilis, and most recently ELA Asset Management.

This move is the latest made by the USGFX group since leaving its former Australia headquarters following the bankruptcy of USGFX-Australia, which is still being sorted through by liquidators BRI Ferrier. The group is in process of moving its global headquarters to London where the company operates FCA licensed Union Standard International Group Limited. In addition to South Africa, we understand that the USGFX group is looking at establishing licensed operations in other jurisdictions, including somewhere within the EU.

Interestingly, the UK company put out a statement earlier today based on what it called “inaccurate speculations”.  The statement (full text below) deals mostly with the status of USGFX group controlling shareholder Soe Hein Minn. The statement indicates that, in response to recent false accusations against USGFX, Mr. Soe Hein Minn is indeed a real person and that he is not the owner of Chinese payments processor UPAY, where USGFX Australia client money seems to have disappeared.

The statement seems to be mainly in response to the latest report by USGFX-Australia liquidator BRI Ferrier, in which BRI describes how it has come up against a brick wall in trying to carry out its duties, first as administrator and later as liquidator.

The USGFX-UK statement reads as follows:

23 October 2020

USG Group Statement on Inaccurate Speculations

In response to the recent false accusations against USGFX, the USG Group would like to clarify a number of points in order to set the record straight. At present there are many misleading online posts and articles which are based on mere speculation and only garble the facts. These factually incorrect posts and articles are hindering the efforts of the Group to assist the clients of USGFX.

There appears to be a few common themes to these unfounded hypotheses. Although USG would like to underline the obvious point that speculation and hypothesis has no place in any public statement, as they have been made they must be addressed:

It has been suggested that Mr. Soe Hein Minn is not a real person. Mr. Soe Hein Minn is indeed a real person and a bona fide individual who has been a shareholder of USGFX for years. Like many investors, Mr. Soe Hein Minn doesn’t participate in any of the corporate operations and he delegates all the day to day running of the business to his lawyers and the Executives of the companies within the Group.

Further speculation is that Mr. Soe Hein Minn owns a PSP called UPAY: USG would like to confirm that Mr. Soe Hein Minn is not the owner of UPAY and in fact is also a victim of UPAY’s actions.

The replication of these misstatements continues to hinder the efforts of USG’s account managers who are actively assisting our clients in handling withdrawal matters. USG apologises profusely for the subsequent delayed withdrawal process.

The liquidation process has yet to be completed and the USG group undertakes to continue cooperating with the authorities concerned under the guidance of our legal team. In the meantime, USG would respectfully request all parties to restrict their public announcements to the facts and work with USG to achieve the best resolution.

USG would also like to stress that their headquarters in London (USG UK regulated by the FCA), USG Global (regulated by the Vanuatu regulator) and the newly founded South Africa office (under the FCSA), as well as USG’s social media platforms are operating as normal. These businesses are independent of USGFX and are not part of the administration process. This goes to show that the rumours that the USG Group is bankrupt are also unfounded.

The Trust of our clients is the biggest asset of the USG Group and is a precious commodity that we appreciate as a 15-year-old FX broker. USG will never evade their responsibilities and all the members of USG will continue to use best efforts to ensure the correct outcome for our clients.