Union Standard International Group (UGFX) a Vanuatu-regulated entity informed its clients last week that it unable to refund their funds at the previously decided deadline. The brokerage has announced that the funds will be cleared by March 2021 instead of December 2020.
Business restrictions responsible for the delay
According to the brokerage, the restrictions imposed on it by the regulator are responsible for the payment delays. Its announcement read,
“USG has been working very hard to process the withdrawals, but unfortunately this has proven to be a slower process than initially anticipated due to the restrictions put in place by the regulator.”
It added that not all of its clients will receive a full withdrawal amount by their previous deadline.
Is USGFX in trouble?
It was unclear from the announcement if the firm is facing any trouble. However, the funds in question are related to the Australian entity which has been in the problem. Later, a USGFC spokesperson said that the USF Group is dedicated in its efforts to deal with the liquidation of USG AU. USG Vanuatu is not undergoing any trouble according to the company.
The brokerage said that many clients from their Australian entity have now been transferred to the Vanuatu entity. The company’s announcement stated that some of its Vanuatu clients were transferred from the USGFX Australian entity. These clients have their money held by ASIC and BRI. The firm said that it is making spontaneous statements to inform them of a liquidation process.
The Australian subsidiary of USGFX has entered into liquidation, with BRI Ferrier acting as the liquidator. The broker’s Australian Financial Services (AFS) license has been canceled. The liquidator has alleged that the brokerage’s shareholders were prevented from dealing with the affairs of the company and ‘investigating their financial position.’
The latest announcement from the brokerage also detailed that more than 50% of the clients’ withdrawals have been processed already. It said that the majority of their clients will be getting their funds soon, with the last of settlements being completed by March.