ASIC cancels account manager over CFD sales

29 June 2020

The Australian Securities and Investments Commission (ASIC) has banned Steven Marsh for providing financial services for three years after making misleading representations to clients.

Marsh was an account manager at Forex Capital Trading between 19 February, 2018, and 20 March, 2019. The company had its Australian Financial Services Licence (AFSL) cancelled earlier this year.

ASIC found Marsh failed to comply with financial services law, was not trained or competent or a fit and proper person to provide financial services.

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In making misleading representations, he told clients would make profits trading with Forex CT and that they reduced their risk of trading losses if they increased deposits in their trading accounts. ASIC noted that contracts-for-difference were a speculative investment and increased deposits would have placed more money at risk.

He also engaged in “high pressure sales strategies and unfair practices” to encourage clients to make deposits or cancel client withdrawal requests.

Marsh had the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

In its statement, ASIC acknowledged the market for over the counter retail derivatives had grown considerably in recent years and there had been a dramatic increase in complaints regarding these types of products.




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