The Australian Securities and Investments Commissions (ASIC) has cancelled the Australian financial services licence (AFSL) of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group.
Although the AFSL was cancelled, ASIC used its power under section 915H of Corporations Act to allow the liquidators to conduct certain activities under the licence until 18 December, 2020.
These activities included:
- Having in place a dispute resolution scheme and arrangements for compensating retail clients;
- To hold professional indemnity insurance; and
- To allow the termination of existing arrangement with current Union Standard clients.
The cancellation followed the appointment of Andrew Cummins and Peter Krejci of BRI Ferrier as liquidators on 3 September, 2020, by court order.
Union Standard operated under the brand USGFX and had its ASFL cancelled on 14 September, 2020, under section 915B of the Corporations Act 2001.
The licence was suspended on 15 July, 2020, as it had entered external administration.
The firm had 28 days from the date of cancellation to apply to the Administrative Appeals Tribunal for an appeal of ASIC’s decision.
