Former Forex Capital Trading Account Manager Banned by ASIC

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The Australian Securities Investment Commission, or ASIC, has made an announcement today. This announcement pertained to the imposition of a ban on one Steven Marsh. March was a former employee of Forex Capital Trading Pty Ltd, and was summarily banned from the financial services industry at large within Australia. This ban will last for three years.

A Veneer Coming Apart

Forex CT had employed March within the time period of February of 2018 to March of 2019, with March serving as an account manager. Within this relevant time period, March engaged with clients to trade in both margins FX Contracts as well as CFDs.

However, things weren’t as they seem. ASIC had concluded that Marsh was not adequately trained, nor was he competent to provide this financial service. As such, ASIC concluded that he was not a proper, fit person to provide such financial services, and had not complied with the financial services law, as well.

Downright Criminal Behaviour

Alongside this, Marsh intentionally made misleading representations to his clients. These representations include telling clients that they had a reduced risk of incurring trading losses if they made a higher deposit within their trading accounts. In reality, this led to a higher risk of the client money, due to the fact that it’s now available to trade with.

Further misrepresentation comes from Marsh telling clients that they would profit from trading in Forex CT, all the while having no reasonable grounds to make such a representation. This is due to CFD trading, in general, being a high-risk, speculative investment, and not one you should take on lightly.

Further conclusions from ASIC was that March had taken part in unconscionable conducts, as well. The regulator explained that March had taken part in unfair practices and high-pressure sales strategies to coerce clients to make deposits. He further used these practices to cancel or delay requests from clients to withdraw their own funds from their respective trading accounts.

Dire Consequences

ASIC had concluded that he had failed to provide a general advice warning when he gave general financial advice as well as personal advice on several occasions. This was due to the Australian regulator concluded that Marsh wasn’t competent or adequately trained; thus, he is mandated to give such a warning.

ASIC had previously canceled the Australian Financial Services (AFS) license of Forex CT, doing so a month prior.

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