The Australian regulator also alleges that Forex CT contravened a ban on conflicted remuneration under the Corporations Act by paying account manager bonuses primarily based on client “net deposits” (total client deposits less withdrawals) and failed to act in the best interests of clients.
This may add a maximum civil penalty of $1,000,000 for the company.
Earlier in June, ASIC banned Forex CT account manager 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.
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.
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