The Australian forex and commodities broker Forex TG (FXTG) has voluntarily requested a temporary suspension of its financial services license (AFS), the Australian Securities and Investments commission (ASIC) said in a press release. FXTG has made the request so it can have time to restructure, re-brand and ensure it complies with all regulatory requirements and obligations, after the changes in ownership, management and strategy take place.
While the license is suspended, FXTG cannot sign up new clients or let them place new orders. All current client positions will be closed out. The company will inform its clients about the temporary suspension and the steps and procedures for withdrawing money from their accounts.
It is yet unclear whether the suspension is already in effect – ASIC has not given a date and FXTG still have no information on their website. The watchdog, however, points out that the suspension will be lifted once the company demonstrates it is able to recommence its business activities in compliance with the license requirements.
“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”, ASIC Commissioner Cathie Armour said, quoted by the watchdog’s press office. “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.”
FXTG offers a wide range of forex, indices, metals, oil and gas, commodities and shares. The minimum deposit is $1000 and $7500 for the different types of accounts and a leverage of up to 1:500.