Australia’s financial regulator ASIC has announced that Forex TG Pty Ltd, the parent company which operates retail forex brand FXTG (at website www.fxtg.com), has voluntarily requested that ASIC temporarily suspend its Australian Financial Services (AFS) licence.
The reason?
FXTG has apparently requested some time in order to restructure, re-brand and to ensure compliance with its regulatory obligations after changes in ownership, management and strategy.
While the suspension is in force, FXTG will not be allowed to on-board any new clients, nor allow the placing of new client orders. FXTG will however be able to close out any current open client positions.
FXTG will be providing clients with additional information about the suspension, including the steps required to withdraw money from their accounts.
It is expected that the suspension will be lifted once FXTG demonstrates to ASIC that it is ready to recommence its licensed business activities and is able to comply with Australian obligations.
ASIC Commissioner Cathie Armour said:
We support this type of proactive move by any AFS licensee that recognises it needs time to fully review its operations to ensure compliance with its regulatory obligations. It will also help to ensure that any significant structural or strategic changes do not result in breaches of its obligations which could negatively impact investors.
LeapRate had exclusively reported as far back as last April about a change in management at FXTG, then once again just two months later in June.
So far, there is no mention of the license suspension on FXTG’s website. FXTG still calls itself an ‘Australian Regulated Broker’.
To see the ASIC press release on FXTG’s voluntary suspension click here.