Union Standard International Group Limited, the United Kingdom-based subsidiary of the USG Group (previously known as USGFX), has lost its authorization from the Financial Conduct Authority (FCA ), as seen on the regulatory registry.
USGFX UK No Longer Holding an FCA License
"This firm can no longer provide regulated activities and products but previously was authorized by the FCA and/or PRA," the company's registry page with the FCA stated, adding that it has not been authorized since 16 December. It means the forex and contracts for differences (CFDs) broker can no longer offer financial services to residents in the United Kingdom.
However, it is not clear if the company voluntarily renounced its FCA license or if the regulator withdrew its authorization.
The cancellation of the FCA license came a month after Damian McDowell, the UK CEO of the broker, stepped down after taking the role in July 2021, replacing Simon Quirke. Moreover, the company did not name any replacement for McDowell.
On top of that, the Companies House filing shows that the firm was incorporated on 31 March 2017 and now has Soe Hein Minn, a Burmese national, as the sole Director. Minn, a controlling shareholder of the brokerage group, was ousted from the Board of the UK arm of the broker in October 2020 but rejoined last year in July.
Check out the recent London Summit session on "Regulation Roundup: Everything You Need to Know for 2023."
USGFX as a Controversial Broker
United Strategic International is a controversial trading service provider. It made headlines when its Aussie operations went into voluntary administration in July 2020, followed by the cancellation of its Australia Financial Services (AFS) license. Additionally, the company's administrators blamed the broker's owner, Minn, for not cooperating with the liquidation process.
A 7-year-old ad of USGFX
Furthermore, the broker moved its headquarters from Australia to London and rebranded last year to shed its negative reputation.
Meanwhile, Union Standard International is still offering services under at least one of its offshore entities, which is registered in St. Vincent and Grenadines. It offers counterparty trading services with around 60 instruments on MetaTrader 4 and MetaTrader 5 platforms.
