ASIC has cancelled the Australian Financial Services (AFS) licence of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group Pty Ltd (Union Standard).

Union Standard operates under the brand USGFX and held AFS licence 302792. The licence was cancelled on 14 September 2020 under section 915B of the Corporations Act 2001 (Cth) (Corporations Act).

Although the licence is cancelled, ASIC has used its power under section 915H of the Corporations Act to allow the liquidators to conduct certain necessary activities under the licence until 18 December 2020, including to have in place a dispute resolution scheme and arrangements for compensating retail clients, to hold professional indemnity insurance, and to allow the termination of existing arrangements with current Union Standard clients. 

Union Standard has 28 days from the date of cancellation to apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.

The cancellation follows the appointment of Andrew Cummins and Peter Krejci of BRI Ferrier (NSW) Pty Ltd as liquidators of Union Standard on 3 September 2020 by court order. For further information about the liquidation and what it means for clients can be found at BFI Ferrier’s website.

Background

On 15 July 2020, ASIC suspended Union Standard’s AFS licence as it had entered external administration (20-164MR).

Editor's note:

ASIC has varied the notice of licence cancellation to extend the section 915H conditions to allow the liquidators to conduct certain necessary activities under the licence until 18 March 2021, including to have in place a dispute resolution scheme and arrangements for compensating retail clients, to hold professional indemnity insurance, and to allow the termination of existing arrangements with current Union Standard clients. 

Editor’s note 2:

ASIC has further varied the notice of licence cancellation to extend the section 915H conditions to allow the liquidators to conduct certain necessary activities under the licence until 17 September 2021 including to have in place a dispute resolution scheme and arrangements for compensating retail clients, and to allow the termination of existing arrangements with current Union Standard clients.