The (ASIC) announced this Thursday that it has appeared before the Federal Court in Melbourne as part of its investigation into Forex Capital Trading Pty Ltd, an over-the-counter derivatives issuer.
According to the statement, ASIC first obtained ex parte interim orders in the Federal Court against Forex Capital Trading on the 12th of March 2019. These interim orders restrained the company from removing their assets from Australia as well as of disposing of their property and freezing monies in its bank account.
This also prevented the sole director of the company, Shlomi Yoshai, from leaving Australia. Following on from this, on the 18th and 19th of March, ASIC went back to court, seeking an extension of the interim orders.
However, the court declined the extension of the freezing orders. Instead, it made orders to prevent Yoshai from leaving Australia until 5:00 pm on Monday the 25th of March this year. Furthermore, the court also restrained Forex Capital Trading from transferring any property, including client money, overseas.
Forex Capital Trading otherwise referred to as ForexCT, is a provider of foreign exchange (forex) and contracts for difference (CFD) trading through its mobile and web platforms. Comparing the Australian Business Number (ABN) listed on ASIC, plus the name of the company, the trading provider operates through the website https://www.forexct.com.au/.
ASIC Cracks Down on Market Misconduct
In today’s statement from ASIC, the financial regulator has not provided any context for its ongoing investigation into ForexCT. Instead, the regulator states that it is seeking interim orders against the company “as part of its action to protect investor funds”.
In recent years, ASIC has been cracking down on misconduct in the retail trading segment and obtaining an Australian Financial Services (AFS) licence, .
As , the Australian watchdog issued its first retail broker licence in two years to Fortrade, a company which already holds several regulatory permits, including one from the UK’s Financial Conduct Authority (FCA), Belarus, and now Australia.
The matter between ASIC and ForexCT will next be before the court on Monday the 20th of May this year.
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