The Australian Securities and Investments Commission (ASIC), the financial services industry watchdog in the jurisdiction of Australia, has just publicly announced that Forex TG Pty Ltd, the parent company of forex broker FXTG, has voluntarily requested that ASIC temporarily suspend its Australian Financial Services (AFS) licence.
According to the regulator’s announcement the reason why this suspension was requested was for the firm to have enough time to restructure, re-brand and to ensure compliance with its regulatory obligations after changes in ownership, management and strategy. The company’s new ownership as from early November 2015 is reported to have made this move in order to be able to proceed with its restructuring and rebranding without affecting its clients and service.
Indirectly endorsing this type of action by entities, ASIC Commissioner Cathie Armour pointed out that: “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.”
Although the license suspension is not yet declared on FXTG’s website, in practice the suspension does not allow Forex TG to on-board any new clients or allow them to place new client orders. However, Forex TG will be able to close out any current open client positions and it will be providing clients with additional information about the suspension, including the steps required to withdraw money from their accounts.
According to ASIC, it is expected that the license suspension will be lifted once Forex TG demonstrates to the regulator that it is ready to recommence its licensed business activities and is able to comply with the obligations emanating from its Australian license.