Australian Securities and Investments Commission (ASIC) announced today that Forex TG Pty Ltd (FXTG) has voluntarily requested that ASIC temporarily suspend its Australian Financial Services (AFS) licence. The move is meant to provide the brokerage with time to restructure, re-brand and to "ensure compliance with its regulatory Obligations after changes in ownership, management and strategy."
As first reported by Finance Magnates, the current owner of FXTG, Stavro D’Amore, took over the firm from missing UTrade CEO, Aviv Talmor. D’Amore commented: “I have no dealings with any liquidators or Aviv, the company has been mine since 4 November 2015 and ASIC records show this. I have taken control and am looking to offset certain parts of the business including restructuring and changing the brand. I have requested ASIC to voluntarily suspend my licence so I can restructure the brand without affecting clients and service.”
ASIC emphasises that the suspension does not allow FXTG to on-board any new clients or allow them to place new client orders. FXTG will only be able to close out any current open client positions. The regulator expects the suspension will be lifted once FXTG demonstrates that it is ready to recommence its licensed business activities and is able to comply with Australian obligations.
ASIC Commissioner Cathie Armour commented: "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. It will also help to ensure that any significant structural or strategic changes do not result in breaches of its obligations which could negatively impact investors."
