The Australian Securities and Investments Commission has long banned the director and employees of an online foreign currency trader, who was within a culture resembling something out of Wolf of Wall Street.
Key points:
- The ForexCT director and chief executive have been banned from offering financial services for 10 years
- Four former employees have been banned for between three and six years
- Forex trading is a very complex and risky method of investing and experts say that is more like gambling
The activities of the foreign exchange broker, Forex Capital Trading (ForexCT), were first published by the ABC in 2019.
Former clients said they were harassed and pressured into losing hundreds of thousands of dollars by the broker’s staff.
This evening, ASIC announced that ForexCT director and chief executive Shlomo Yoshai has been banned for 10 years from offering financial services.
“ASIC found that Mr Yoshai’s lack of understanding or respect for compliance was so severe that he justified justifying the exclusion period for such a long time, especially as he was in charge. the work of ForexCT, “the regulator said in a statement.
In his statement, ASIC stated that Mr. Yoshai was “involved” in the culture of the ForexCT trading floor, which was like account managers like Wolf of Wall Street.
“A bell or gong was rung when clients deposited certain amounts of money into their trading accounts and account managers could take part in promotional ‘games’ such as ‘wheel of fortune’, roulette tables and games dice to make money if some consumer investment targets. they were met, “ASIC said.
ABC News: Michael Barnett, file photo
)ASIC said Mr. Yoshai stressed that ForexCT account managers use high-pressure sales tactics on clients, offering clients an incentive to invest money, proposing trading strategies that would increase client transparency and emphasizing delayed or delayed messaging.
The ABC’s attempts to contact Mr. Yoshai and his lawyer were unsuccessful.
Five former employees of the broker have been banned for between three and six years.
Among the allegations, ASIC prosecution staff told messengers that they did not benefit from the client investing money, when, in fact, they were paid a commission based on client investments.
In May last year, ASIC suspended the approval of ForexCT financial services after it was found to be involved in “reckless, deceptive and misleading conduct and failure to manage conflict between interests ”.
“The ASIC study also found that ForexCT did not have the right values and ethical judgment in dealing with futures, did not ensure that its representatives were adequately trained and compliant with financial services laws and did not assured that financial services covered by his license were provided efficiently, honestly and fairly. , “ASIC said.
ASIC has also initiated a civil lawsuit against the company and Mr. Yoshai.
Forex CT
)A series of ABC stories revealed serious concerns about the lack of regulation and oversight of the large foreign exchange bankruptcy industry.
Forex trading is a very complex and risky investment method, which experts say is more like gambling.
It involves placing one currency against the other in a series of micro-trades.
If the exchange rate goes up in terms of the money you have backed, you will make a profit.
The volatile nature of foreign exchange rates makes it a very volatile trading method.
Many companies have ASIC licenses but are headquartered in offshore jurisdictions.
The huge popularity of Forex has led to governments around the world breaking down and, in some cases, banning forex trading altogether.
While permitted in Australia, ASIC warns that forex trading “requires a great deal of knowledge, research and analysis”, as money markets are highly volatile and can be influenced by so many factors. .