Retail Broker Forex CT Fined AUD $20 Million For Misconduct

Fazzaco learned that retail OTC derivative issuer Forex Capital Trading Pty Ltd(Forex CT) was fined AUD $20 million for misconduct. In addition, Shlomo Yoshai,  CEO, responsible manager and sole director at Forex CT, was fined $400,000.

Back to the beginning of June 2020, the Australian Securities and Investments Commission(ASIC) cancelled the AFS licence of Forex CT. The firm’s license was cancelled because the agency found that its 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.

In March this year, Shlomo Yoshai was given a ten-year ban​. Two former team leaders, Jarrod Popuard, and Benjamin Esler, were banned for six years, and four-and-a-half years, respectively. Former account manager Huy Minh (Andy) Hoang was banned for five years and Andrew Tran for three years.

ASIC estimated that Forex CT customers lost more than $140 million over several years, most of which found its way to ownership coffers. The company's pay system included inherent conflicts that drove its account managers to put their own interests (and the interests of Forex CT) over their customers.