Forex firm suspends licence voluntarily
Foreign exchange company, Forex TG, has voluntarily requested the Australian Securities and Investments Commission (ASIC) to suspend its Australian financial services licence (AFSL) to ensure it is complying with regulatory obligations after it restructures, and re-brands itself.
The company would not be allowed to on-board new clients or place new client orders under the suspension but it can close out any current open client orders.
ASIC commissioner, Cathie Armour, said the company wanted to ensure its change in ownership, management and strategy would not result in breaches of its obligations that would hurt investors.
"We support this type of proactive move by any AFS licensee that recognises it needs time to fully review its operations to ensure compliance with its regulatory obligations," she said.
Forex TG would give clients more information about the suspension, including measures to be taken to withdraw money from their accounts.
ASIC expects the suspension will be removed once Forex TG can restart its licensed business activities while complying with its regulatory obligations.
Monarch FX, which was an authorised representative of Forex TG, was slapped with a restraining order by ASIC last year for providing certain services which they were not licensed or authorised to provide.
AUTHOR
Malavika Santhebennur
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