Global law firm Norton Rose Fulbright has advised the Australian Securities and Investments Commission (ASIC) in relation to the Federal Court decision ordering Forex CT to pay a $20 million penalty and that its sole director be disqualified for eight years and fined $400,000 for contraventions of the Corporations Act and ASIC Act.
Forex CT carried on a financial services business of providing advice to retail clients in relation to over-the-counter (OTC) derivative products. Notably, Justice Middleton found Forex CT had engaged in systemic unconscionable conduct, paid conflicted remuneration to certain Forex CT employees and failed to act in the best interest of its clients. The sole director, Shlomo Yoshai, was also found to have breached his director duties and aided, abetted, counselled or procured Forex CT’s system of unconscionable conduct.
Norton Rose Fulbright regulatory disputes partner Andrew Riordan led the team with support from senior associate Caitlin Brown, associates Emily Almond, Tess Waldron and Ashvin Segaran, and lawyers Sophie Mether and Nick Bernardo.
Andrew Riordan commented:
“We are pleased to have assisted ASIC in securing this Federal Court decision, in which Justice Middleton ordered significant penalties for 'systemic compliance deficiencies'.”
The high-risk nature of OTC derivative products has also been the subject of another ASIC proceeding. In October 2020, Norton Rose Fulbright also advised ASIC on its largest penalty ever issued in a single enforcement action, with the Federal Court ordering AGM Market & Ors to pay a $75 million penalty for misleading and deceptive, and unconscionable, conduct.
For further information please contact:
Alex Boxsell, Head of Digital, Communications & Experience, Norton Rose Fulbright in Australia