The FX broker USGFX issued a statement today stating the company would be unable to refund all the stuck client funds by the end of 2020, as previously planned.
The brokerage explained that the delay was caused by the regulator and the restrictions put in place.
The statement said:
USG has been working very hard to process the withdrawals but unfortunately this has proven to be a slower process than initially anticipated due to the restrictions put in place by the regulator. It is now apparent that not all clients will receive their full withdrawal amount by the previously stated target of the end of the year.
The Vanuatu Financial Services Commission regulated broker noted that 50% of the withdrawals have been processed so far and the company continues to work to process the rest of them.
USG stated that it expects all of the funds to be processed and refunded by the end of March 2021.
Earlier this year, the USGFX Group’s Australian subsidiary entered into liquidation. Soon after, ASIC announced that the AFS licence of the broker was suspended and BRI Ferrier (NSW) Pty Ltd were appointed as administrators of the company.
Following the liquidation of its Australian unit, the USG Group moved its headquarters from Sydney to the FCA regulated USG UK and its office in London.
