New Zealand-based group Forex Brokers has reportedly collapsed, leaving in its wake a group of clients owed in excess of $1.0 million after suffering significant losses from the company, according to a New Zealand Herald report.
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Forex Brokers was established over twenty years ago in 1995 – based out of Auckland, the group’s main office was in the Dingwall Building in the city’s Queen Street. Following the collapse of the group, shareholders of Forex Brokers have already appointed PKF Corporate Recovery & Insolvency as liquidators in a bid to recover client losses.
Recovery of the funds looks to be unlikely however, according to a recently appointed liquidator Christopher McCullagh. He has already been contacted by more than a dozen creditors, who are collectively owed over $1.0 million.
He warned: "It would be fair to say there'll be a significant shortfall to creditors." The swift finality surrounding Forex Brokers’ demise has also left many clients facing losses. Some clients had been using the group for upwards of 17 years.
Forex Brokers offered a wide range of products including spot FX transactions, offshore bank drafts and telegraphic transfers. The firm had proved to be reliable in the past; its problems were only a recent phenomenon. A telltale sign came when one of its recent fund transfers to China did not arrive, sending the company into a downward spiral amidst internal credit issues.
Customers had also been filing complaints with NZ’s Financial Markets Authority (FMA), the country’s paramount regulatory authority. The FMA had received three recent complaints about Forex Brokers, however the company’s offering did not fall under the FMA’s regulatory umbrella.
As recently as last week Forex Brokers’ website was still available. It has now gone dark.
