Australia financial regulator ASIC has continued its tough recent stance on the retail forex sector, with the cancellation of the Australian Financial Services (AFS) license of retail forex broker Enfinium Pty Ltd following a detailed investigation.
ASIC’s main concern surrounded Enfinium’s use of the Virtual Dealer plugin for MT4. Virtual Dealer gives a broker the ability to add a trade execution delay of between 1 to 10 seconds to a client’s trade. An execution delay added by the Virtual Dealer could disadvantage clients to the benefit of the broker, if markets moved against the client during any delay.
ASIC’s investigation found that during the 2010-2013 period Enfinium’s Virtual Dealer settings had been changed on 271 occasions, but Enfinium kept no records of those changes. Due to a lack of adequate recordkeeping ASIC was unable to determine whether a trade execution delays were actually used or not.
Enfinium actually had already entered administration in October 2014, and was wound up by creditors on November 6, 2014.
To see the official ASIC posting click here.