‘Exploited’ investors lose fortune, $280m fines mulled
In high -risk investment products, intermediary institutions, which have been generously profitable from vulnerable customers who have lost millions of dollars, can be fined with a fine of 280 million dollars.
Investors lost $ 83 million by investing in complex, high-risk-risk-loving derivatives pushed by the Standard International Group and two authorized representatives between 2018-2020.
The Federal Court is a unity standard and two representatives with hundreds of companies and financial law violations through systemic abuse targeting inexperienced consumers in December.
Complex products allowed customers to speculate about the change in the value of a basic asset such as exchange rates, stock market indices, single stocks, commodities or crypto-creatures.
The court found that some customers have traded with European EuropeFX “but often not, although not time,” blindly.
The Australian Securities and Investments Commission (ASIC) is currently requesting a total of $ 287.1 million against three companies.
European lawyer Live Livingston SC’nin discussed at the hearing on Tuesday, the lawyer Live Livingston SC’nin, the only person who is not in liquidation EuropeFX.
He said that the income of the company is directly linked to the trade losses of customers.
Justice Michael Wigney, “In short, the more customers are lost, the more income earned.”
The judge found that in December, all three companies were “generously” from the behavior of all of them.
Livingston, Union Standard and Tradefred – both not represented at the hearing – $ 143.5 million and $ 29.4 million, he said.
Europefx, ASIC’in the fine proposed “double penalty” claiming that a penalty of 40 million dollars lower.
In the future, ASIC argued that the lower amount is insufficient to deterd similar illegal behaviors in the future.
Michelle Painter SC, the European lawyer of EuropeFX, said that his client should be shot with a lower penalty than Union Standard, because the company that gives financial products in the first place.
At a hearing, the company claimed that the training of its personnel properly trusted Union Standard.
Justice Wigney rejected these claims.
Europe’s account managers illegally gave personal financial advice, put pressure on customers in depositing more funds and made misleading statements about investments.
The company also tried to put pressure on customers who threatened to go to Australian Financial Complaint Authority to accept modest settlements.
“The behavior of EuropeFX was outside the norms of social behavior that would guarantee the condemnation of condemnation for conscience in terms of providing financial services.” He said.
The judge also found that Union Standard did not warn customers based on China and that they would violate Chinese laws by investing in their products.
Several union standard managers are prohibited from providing financial services based on their behavior in firms or other companies.
The hearing continues.
