The Australian Securities and Investments Commission (ASIC) banned Forex CT sole Director, Shlomo Yoshai and four former employees for years from providing any financial services, the regulator announced on Wednesday.
Yoshai, who was also the company’s Chief Executive, is facing a ten-year ban. Two former team leaders, Jarrod Popuard, and Benjamin Esler, are banned for six years, and four-and-a-half years, respectively, while the former account manager, Huy Minh (Andy) Hoang is banned for five years and Andrew Tran for three years.
Forex CT, officially registered as Forex Capital Trading Pty Ltd, lost its Australian Financial Services (AFS) license last year, as the regulator found that the company was involved in “unconscionable, misleading and deceptive conduct.”
A Systemic Misconduct for Risky Sales
ASIC condemned the highly pressurized sales culture at the company as accounts managers were pushing high-risk contracts-for-difference (CFDs) and margin foreign exchange contracts (FX Contracts) products issued by Forex CT to traders.
Additionally, the regulator found that Yoshai offered incentives to clients for encouraging deposits, recommended risky trading strategies, pressured clients to deposit funds to trading accounts and also delayed and cancelled withdrawal requests.
“ASIC found Mr Yoshai’s lack of understanding or regard for compliance was so serious it justified the making of the banning period for such a significant period, particularly given he was someone who oversaw the operations of Forex CT,” the regulator noted.
Earlier, the Aussie regulator banned former Forex CT employee, Steven Marsh for three years, an account manager directly involved in the sales of high-risk instruments. The recently banned employees were involved in serious misconduct and deceiving traders.
Furthermore, the regulator took Forex CT to court for civil penalty proceedings, alleging that the company was “engaged in a system of unconscionable conduct, which was aided by Mr Yoshai.”