LeapRate Exclusive… LeapRate has learned that ACM Gold and Forex Trading (PTY) Ltd, based in Johannesburg and one of Africa’s largest Retail Forex brokers, has had its license provisionally withdrawn by South African financial regulator the Financial Services Board (FSB).
The suspension took effect as of last week, August 5, and is still in force.
Separately, ACM Gold’s longtime CEO Irfan Pardesi has left his executive position in the company to become co-CEO of South African discount airline Skywise Airlines, although he remains on ACM Gold’s board of directors. We believe that Pardesi’s departure was not connected to the license withdrawal.
We understand that ‘provisional withdrawal’ by the FSB means that the company cannot take on any new clients, but is allowed to continue operating as normal with existing clients. After the FSB concludes its investigation, if ACM Gold is deemed to have committed an offense and/or if the FSB concludes that the company is not complying, then the FSB might suggest a license suspension. However the company in that instance would still have the right to appeal. Only if an appeal were to fail would ACM Gold’s license be fully withdrawn.
An FSB compliance department manager had the following to say to LeapRate:
ACM has been provisionally withdrawn for contravening the provisions of the Financial Advisory and Intermediary Services Act.
From a source close to the situation we believe that the withdrawal was a result of actions by an ACM Gold client running EAs which promised outsized returns, not from the actions of ACM Gold itself.
And, that ACM Gold’s license is likely to be renewed as early as next week.
The following was posted on the FSB’s website relating to the withdrawal:
A company representative had the following response:
Please note ACM Gold is working forward to resolve the issue as soon as possible. The license status will be updated soon.
Meanwhile, we can assure you that all customer funds are safe and secure, and we are doing everything we can to accelerate resolution with the FSB.