On Monday, it was revealed that 29 financial companies associated with the Australian Financial Complaints Authority (AFCA) hadn’t paid charges related to compliance. There are three forex firms in the mentioned group.
The failure to pay the respective charges is considered a breach of the AFCA membership requirements, according to the financial institution via a statement. The total amount of debt accumulated by the whole 29 companies is AU$1.715 million, the equivalent of $1.154 million.
Membership Fees and Other Payments
The statement read that AFCA members need to pay a membership levy, as well as fees for each complaint that they receive.
Three of the firms that owe the most significant amount of money happen to be working in the FX industry. They were all formally regulated by the Australian financial watchdog, the ASIC (Australian Securities and Investments Commission.) They are AGM Markets Pty Ltd, Direct FX Trading Pty Ltd, and Berndale Capital Securities Pty Ltd. Collectively.
Between the three, they owe AU$1.245million in payments, so needless to say; they could be facing some legal issues if they don’t fulfill their payment operations.
To be more specific, the enterprise that owes the most to the AFCA, according to the latter, is AGM Markets, with AU$483,200 in total debt. Direct FX Trading is next with a total amount of AU$397,570, and Berndale Capital Securities has AU$364,230 outstanding.
Issues Date back to Last Year
As recently reported by a prominent financial news site, the Australian financial regulator canceled Australian Financial Services (AFS) license of AGM Markets, which is known around the industry for being an international online FX broker. That happened on November 2018.
The ASIC explained that the decision to nullify the license had to do with unconscionable behavior and a problematic conflict of interest. The watchdog further explained eight total reasons why AGM Markets’ license was disabled.
Before canceling AGM Markets’ license in November, the ASIC did the same thing to Direct FC Trading. At that moment in time, the regulator noted that constant failures in compliance resulted in the decision that came on October 8, 2018.
If that weren’t enough, Direct FX was placed into external administration and appointed a liquidator on October 11, 2018, by the Supreme Court of New South Wales, one of the biggest and most influential states in Australia.
In the specific case of Berndale, not only it had its license nullified in November, as well, but its former director Stavro D’Amore was banned and now won’t be able to provide financial services of any kind for a six-year period.