An account manager for the embattled financial services company has been banned from providing financial services for three years after engaging in unconscionable conduct.
Steven Marsh, an account manager for retail OTC derivatives issuer Forex Capital Trading (Forex CT) – which has now had its AFSL revoked – made misleading representations to clients and engaged in high-pressure sales strategies and unfair practices in order to encourage clients to make deposits or delay or cancel client requests to withdraw their own funds from their accounts.
“ASIC found Mr Marsh made misleading representations to clients, including that clients would make profits trading with Forex CT when there were no reasonable grounds for making such representations, given that an investment in a CFD is a speculative high-risk investment; and clients reduced the risk of incurring trading losses if they made increased deposits into their trading accounts, when in fact increased deposits would have the effect of placing more client money at risk,” ASIC said in a statement.
Forex CT offered clients opportunities to trade in contracts for difference (CFDs) and margin foreign exchange contracts (FX contracts). ASIC’s investigation identified clients incurring large losses of hundreds of thousands of dollars, including from their superannuation accounts, as a result of investing in CFDs and FX contracts.
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