Union Standard International Group Pty Limited (USGFX)’s liquidator BRI Ferrier published a circular on Monday mentioning recent court orders which justify its move of not closing any open positions. The liquidator suggests that the broker’s shareholders did not co-operate with it.
Australian court rules in favor of liquidators
A judge at the Federal Court of Australia ruled on a motion filed by the liquidation on December 16. The liquidators sought these orders because of the obstructive behavior by the shareholder of USGFX, Union Standard Group International Holdings Limited. The liquidator said,
“You will recall that USG Holdings, Mr. Soe Hein Minn, and/or parties acting for them, actively prevented our access and control of the trading Platforms, such that we were unable to give effect to the technical close out of the Client’s open positions as required by ASIC’s AFSL conditions.”
BRI had earlier highlighted the brokerage clients about the lack of cooperation from the shareholder when it began the liquidation of the firm.
USGFX in administration since July
The Australian broker went under administration in July this year, after the financial market regulator ASIC forced it to take such steps. The company’s license was suspended earlier, which was cancelled by the ASIC after the liquidation was confirmed. The regulator also sued the company and its two former representatives, for offering leveraged forex trading and other financial services to clients in China illegally.
The liquidator suggests that the court’s order will not affect its role in evaluating the claims from creditors. It is working on separate legal applications on quantifying the claims of competing creditors. The application is expected to be heard in the upcoming months.
The Vanuatu-regulated subsidiary of USGFX also said that is facing regulatory issues in refunding its Australian clients. It said that regulatory hurdles in Australia are slowing down its process of refunding clients. It is unclear if the Vanuatu entity is facing any troubles.