The Australian Financial Complaints Authority (AFCA) has received a high volume of complaints regarding online stockbroker Forex Financial Services, with ASIC now to decide if a trading website belongs to the company or a scam using its name to fraudulently gain customers’ funds.
A number of consumers claimed to AFCA they have been unable to withdraw funds from the company’s trading website.
Forex has advised the complaints body that it has no connection with the website, rather an unrelated operation has fraudulently used its company name and Australian license details and it denies providing a financial service to the customers.
AFCA has referred the matter to ASIC, given the allegations against an Australian Financial Services License holder.
The complaints authority can only process claims about financial firms that are members of the complaints authority. Although Forex is an AFCA member, the government body said it was unclear if the entity used by customers to invest funds is also an AFCA member.
AFCA has alerted consumers it is unable to consider these complaints against Forex while ASIC is reviewing the matter.
It has told any customers with concerns about accessing their trading funds through Forex to delay lodging a complaint until the corporate watchdog completes its assessment.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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