ASIC praises forex trader's request to suspend its licence

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A forex trader has drawn praise from ASIC for a proactive move to voluntarily suspend its licence.

Forex TG Pty Ltd voluntarily requested ASIC temporarily suspend its AFSL to provide it time to restructure, re-brand and ensure compliance following changes in ownership, management and strategy.

ASIC said the suspension does not allow Forex TG to bring on new clients or place new client orders, and that the company would be able to close out any current open client positions. The regulator said the suspension was expected to be lifted once Forex TG demonstates that it is ready to recommence its licensed activities and comply with Australian obligations.

ASIC praised the company's proactive approach to getting compliance in order.

"We support this type of proactive move by any AFS licensee that recognises it needs time to fully review its operations to ensure compliance with its regulatory obligations. It will also help to ensure that any significant structural or strategic changes do not result in breaches of its obligations which could negatively impact investors," ASIC commissioner Cathie Armour said.