USGFX to Enter Liquidation 

BRI Ferrier is the external administrator of now-bankrupt forex broker Union Standard International Group PTY LTD (USGFX). The Australian-based broker was a leading provider of FX, indices and CFD trading to traders on MT4/MT5 platform.

The administrator has issued a notification informing its decision to put the broker under immediate liquidation.

This transpired two weeks ahead of the expiration of the extending convening period for the administrator.

BRI’s decision was propelled by the difficulties it faced in conducting its external administration from Soe Hein Minn. Moreover, from the director and the majority shareholder of the broker, and his representatives. This was as detailed in the circular sent to the broker’s clients and creditors.

BRI said that they were kept from dealing with the Company’s affairs and investigating its financial position. It specified the USGFX owner refused its requests.

They even refused court orders to provide access to the MT4 and MT5 platforms through which the business is conducted.

In an earlier circular, the external administrator also raised concerns over the financial positions of the broker.

On Monday’s circular, BRI noted:

“…we have on advice formed the view that there is limited value for the Company and its clients and creditors in the voluntary administration process continuing and that the most appropriate course is to put the Company into liquidation immediately on the basis that it is just and equitable to do so.”

A Troubled Broker

USGFX entered into voluntary administration on the 8th of July 2020. This followed the appointment of BRI as its administrator and the resignation of its former CEO Shay Zakhaim.

The ASIC also suspended the license of the broker citing the control of the company by the external administrator. It forced the broker to move its Group headquarters to London, where it’s already operating a similarly named FCA-regulated subsidiary.