The Australian Securities and Investment Commission announced the ban of former Forex Capital Trading Pty Ltd (Forex CT) employee, Steven Marsh, from providing financial services for three years.
Steven Marsh served as an account manager at Forex CT between February 2018 and March 2019. In this period, Marsh traded CFDs and FX Contracts.
The Australian watchdog found that Marsh did not comply with the financial services law and was not adequately trained to provide financial services.
ASIC also discovered that Marsh made misleading statements to clients. He promised they would make profits trading with Forex CT when actually CFD is a relatively high-risk investment. Marsh also promised that risk the of trading losses is reduced if clients made increased deposits in their trading accounts while in reality increasing deposits is placing more money at risk.
Marsh also engaged in high pressure sales strategies and unfair practices to encourage clients to make deposits or delay clients withdrawal of their funds from their trading accounts.
In May ASIC cancelled Forex CT’s Australian financial services (AFS) licence after finding that the company’s business model was disregarding their licence obligations. Moreover, it resulted in misleading conduct.
