Australia licensed broker USGFX has informed clients that it is unlikely to be able to return client funds as previously scheduled as part of its liquidation process, which began earlier this year. According to Finance Magnates, the issue stems from the migration of AU domiciled customers into the broker’s Vanuatu entity.
For reasons not disclosed by the broker, other than “restrictions imposed by the regulator on business” by Vanuatu financial authorities, customers of the troubled brokerage will unlikely see their funds by the end of the calendar year. Nonetheless, the broker has assured the public that operations at its Vanuatu branch continue as normal.
It remains to be seen if Australia’s Securities and Investments Commission will step in to provide any relief to AU domiciled clients who are experiencing a delay and why the issue of client withdrawals en masse has come up in the first place. With both jurisdictions have financial regulatory bodies tasked with resolving such situations in the interest of customers, little has been disclosed so far as to how the agencies are working to resolve the matters quickly for retail traders.