AFCA Stops Considering Complaints about Forex CT

The Australian Financial Complaints Authority (AFCA) has stopped considering and handling complaints from consumers against the actions of Forex Capital Trading Pty Ltd (Forex CT) after 3 August 2021.

AFCA formerly announced that despite the set of actions taken by the Australian Securities and Investments Commission (ASIC) against Forex CT, the firm remained a current member of AFCA for 12 months​ until 3 August 2021, which means that AFCA would continue to consider and handle complaints lodged by consumers against Forex CT as timely and efficiently as possible until 3 August 2021, while complaints made after 3 August 2021 would not be considered. 

Back to the beginning of June 2020, ASIC cancelled the Australian financial services (AFS) licence of Forex CT, announcing that the firm's business model disregarded key obligations of an AFS licensee, resulting in unconscionable conduct, misleading and deceptive conduct and a failure to manage conflicts of interest. 

ASIC then took Forex CT and its sole director, Shlomo Yoshai to court. The regulator accused Forex CT with using high-pressure sales tactics to persuade clients to transfer more money to the firm, recommending inappropriate trading strategies to clients, making false or misleading statements and fostering an unhealthy culture which did not promote compliance with financial law, among other transgressions. 

In May 2021, Forex CT was ordered by Australia's Federal Court to pay a $20 million (AUD)​ for engaging in systematic unconscionable conduct, paying conflicted remuneration to its team leaders and account managers and failing to act in the best interests of its clients.