ASIC Bans Forex CT Director Shlomo Yoshai for 10 Years

The Australian Securities and Investments Commission (ASIC) banned Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term CT sole Director, Shlomo Yoshai and four former employees for years from providing any financial services, the regulator announced on Wednesday.

Yoshai, who was also the company’s Chief Executive, is facing a ten-year ban. Two former team leaders, Jarrod Popuard, and Benjamin Esler, are banned for six years, and four-and-a-half years, respectively, while the former account manager, Huy Minh (Andy) Hoang is banned for five years and Andrew Tran for three years.

Forex CT, officially registered as Forex Capital Trading Pty Ltd, lost its Australian Financial Services (AFS) license last year, as the regulator found that the company was involved in “unconscionable, misleading and deceptive conduct.”

A Systemic Misconduct for Risky Sales

ASIC condemned the highly pressurized sales culture at the company as accounts managers were pushing high-risk contracts-for-difference (CFDs) and margin foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term contracts (FX Contracts) products issued by Forex CT to traders.

Additionally, the regulator found that Yoshai offered incentives to clients for encouraging deposits, recommended risky trading strategies, pressured clients to deposit funds to trading accounts and also delayed and cancelled withdrawal requests.

“ASIC found Mr Yoshai’s lack of understanding or regard for compliance was so serious it justified the making of the banning period for such a significant period, particularly given he was someone who oversaw the operations of Forex CT,” the regulator noted.

Earlier, the Aussie regulator banned former Forex CT employee, Steven Marsh for three years, an account manager directly involved in the sales of high-risk instruments. The recently banned employees were involved in serious misconduct and deceiving traders.

Furthermore, the regulator took Forex CT to court for civil penalty proceedings, alleging that the company was “engaged in a system of unconscionable conduct, which was aided by Mr Yoshai.”