First, the ASIC cancels Forex CT license, and now Forex bans former employee, Steve Marsh, from ASIC for 3 years! Because of this ban on Steve Marsh, he won’t be able to provide any financial services for three years!
What’s All This About?
ASIC can be expanded as Australian Securities and Investment Commission, declared openly on Monday, that they have banned Steve Marsh, a former employee of the Forex Capital Trading Pty LTD. This ban has fallen upon him very heavily because the ban will have already restricted him from providing any financial services for 3 years.
This Ban from ASIC comes in after they banned AFS license of Forex CT, a retail over-the-counter derivative issuer.
The Real Gossip
The ban was imposed on Marsh within a month after ASIC banned Forex CT. They have various reasons for the ban imposed on Marsh. After very detailed research, our reporters came to know about the real issues. As reported by them, the ban came into existence because the farm was operating on misleading, deceptive conduct. The business model that they followed was disregarding the key obligations of an AFS license, which resulted in immoral means of conduct, which developed in failure to manage conflicts of interest.
After a thorough investigation of the issues and Steve Marsh’s conduct, they found that Mr. Marsh was involved in making misleading representations to the clients. These misleading representations consisted of some disturbing truth about Forex CT. He used to convince clients that they will be able to make profits even when CFDs are unpredictable, and sometimes this brought high-riah investment. He used to convince people that if they trade with Forex CT, they will always be in profit. He intentionally misleads people by saying the money they invest isn’t a high-risk investment and that they will surely be profited!
Marsh has been alleged to lure people into money traps by not making them understand the risks involved in these investments. Instead, he made them invest in even larger amounts! Marsh asked people to increase their deposit in order to reduce the risk of incurring trade losses. He made people fool to make money for him and the company!
After investigating by the Australian regulator, they found that Marsh was not trained nor competent to provide financial services because he did not comply with the financial services rule and law. In fact, he used the powers to suck out money from people using immoral and illegal means. Therefore, regulators concluded that he was not fit for the post or deserved it, and hence, the ban was imposed on him after thorough investigation.
What Was Steve Marsh’s Original Position In the Company?
Mr. Steve Marsh was an account manager in Forex CT. He was in that particular position from February 18 to March 19. He was responsible for interaction with the clients associated with their trades in margin forex exchange contracts. Also, he used to interact with trades associated with contracts for different derivations. Exactly during this period, he misused his power and did not comply with the rules of the final services just for the benefit of his personal ego. When these discrepancies in the trading system came into limelight, regulators started investigating the issue.