ASIC vs Monarch FX - Federal court of Australia

ASIC has commenced proceedings in the Federal Court of Australia to stop Monarch FX Group Pty Ltd (Monarch FX), and its former director a...

ASIC has commenced proceedings in the Federal Court of Australia to stop Monarch FX Group Pty Ltd (Monarch FX), and its former director and general manager, Quinten Hunter, from carrying on a financial services business. The Federal Court of Australia made interim orders on 10 October 2014, restraining Monarch FX and Mr Hunter from doing various things, including carrying on a financial service business, until 4.00 pm on 21 November 2014. These orders will remain in place until that time.

Monarch FX provides FX signals to consumers who purchase memberships with the company. The signals are automatically executed on members’ trading accounts. ASIC is concerned that Monarch FX is not licensed or authorised to operate certain services which include its Managed Discretionary Account (MDA) services which it operates by automatically executing trades on members’ trading accounts without prior reference to those members for each transaction recommending members establish a self-managed superannuation fund (SMSF) to purchase its memberships, and then use money from their SMSF to trade in foreign exchange contracts, and arranging for its members to enter into foreign exchange contracts.

ASIC is concerned about the number of companies operating similar business models to Monarch FX, which use trading software to automatically execute trades in foreign exchange contracts on clients’ accounts without instructions for each transaction. ASIC considers that this would constitute an MDA service, which requires operators to hold appropriate Australian financial services (AFS) licence authorisations and conditions. ASIC has issued Regulatory Guide 179 Managed Discretionary Account Services (RG 179) and several class orders setting out how MDA services for retail clients must be operated.

Given the dangers and complexity of foreign exchange trading, consumers should understand the risks before investing and, particularly, establishing a SMSF in order to trade in foreign exchange. The next hearing of the matter will be on 21 November 2014 at 9.30 am.

COMMENTS

Name

Aussie forex brokers,4,Australia currency trading basics,1,Australia forex brokers,6,Australia forex market hours,1,Australian Forex brokers,15,Australian Market updates,23,currency trading,3,forex brokers in Australia,5,Forex Education,27,Forex market Australia,1,forex market hours in Australia,3,forex trading in Australia,2,Online Trading platform,4,
ltr
item
Australia Forex Brokers: ASIC vs Monarch FX - Federal court of Australia
ASIC vs Monarch FX - Federal court of Australia
http://4.bp.blogspot.com/-y4QWuOqY-Xg/UZy1VpLvvjI/AAAAAAAAAU8/miz3Vk-rQFA/s1600/australian-stocks.jpg
http://4.bp.blogspot.com/-y4QWuOqY-Xg/UZy1VpLvvjI/AAAAAAAAAU8/miz3Vk-rQFA/s72-c/australian-stocks.jpg
Australia Forex Brokers
http://australiaforexbrokers.blogspot.com/2014/11/asic-vs-monarch-fx-federal-court-of.html
http://australiaforexbrokers.blogspot.com/
http://australiaforexbrokers.blogspot.com/
http://australiaforexbrokers.blogspot.com/2014/11/asic-vs-monarch-fx-federal-court-of.html
true
7536970362965208970
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy