Asset restraint orders against OTC providers
The corporate watchdog has applied for interim asset restraint orders against two over the counter (OTC) derivatives providers while it pursues investigations.
The Australian Securities and Investments Commission (ASIC) applied to the Federal Court for the restraint orders against Maxi EFX Global AU Pty Ltd (trading as EuropeFX) and BrightAU Capital Pty Ltd (trading as TradeFred), both of which are Corporate Authorised Representatives of Union Standard International Group Pty Ltd (trading as USGFX).
Currently, there have been no findings of contraventions of the Corporations Act against any party.
An ASIC announcement said: “On 12 December 2019, the Court also made asset restraint orders against USGFX on an ex parte basis.
“On 17 December 2019, those orders were vacated by the Court. USGFX gave an undertaking to the Court to keep amounts of $182,000 and $53,067.33 in a separate bank account. No further asset restraint orders were made against USG.”
The asset restraint orders did not prevent EuropeFX and TradeFred from making payments in the ordinary course of business to customers or creditors, ASIC said.
It noted that the Court also restricted overseas travel of USGFX and TradeFred director, John Carlton Martin. EuropeFX director, Pedro Eduardo Sasso, would need to notify ASIC prior to leaving Australia.
The matter will be before court on 17 February, 2020.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
