The Australian Financial Complaints Authority (AFCA) announced on Thursday that it will continue receiving complaints and grievances of Forex CT clients who lost their funds with the now-collapsed broker till August 3, 2021.
The clarification came a day after an Australian federal court slapped the forex and CFDs broker with a hefty fine of AUD20 million for its involvement in ‘systemic unconscionable conduct’.
Forex CT also lost its Australian Financial Services (AFS) license issued by ASIC last year, which has raised questions on the address of customer complaints.
“Forex CT will continue to be a current member of AFCA for 12 months until 3 August 2021,” the external dispute resolution body clarified. “Consumers can continue to lodge complaints about the conduct and services of Forex CT until 3 August 2021.”
“AFCA will continue to consider and handle complaints against Forex CT as timely and efficiently as possible.”
Suggested articles
6 Things to Consider While Choosing a BrokerGo to article >>
Forex CT victims must register their complaints and claims with the AFCA before the August 3 deadline as the body will not be able to take any requests after Forex CT’s membership expires.
“Before you complain to AFCA, we encourage you to complain directly to Forex CT first using their internal dispute resolution process,” AFCA added.
Settlement Process Is Not Clear
However, the authority pointed out that it is not sure about the impact of current ASIC investigations and the penalty imposed by the court on the broker on client claims for compensation or AFCA’s investigation of complaints.
Forex CT has been blamed for massive violations of Australian securities market laws. It brewed a high pressured sales culture in the company and used illicit tactics to receive client deposits.
Apart from the penalty on the company, the court also banned its sole director and CEO, Shlomo Yoshai, for eight years and slapped an additional AUD 400,000 fine on him.
