ASIC moves to shut down four financial services websites

The corporate watchdog has moved to shut down four financial services websites purporting to offer users the ability to trade in foreign exchange contracts, shares and derivatives.

ASIC announced yesterday that it had secured an order from the New South Wales Supreme Court to wind up AC Trading Co. The company was running an online foreign exchange-trading website which allowed clients to open and deposit funds into an account to trade foreign exchange contracts and shares.

After receiving complaints that AC Trading was passing itself off as a US company, ASIC obtained orders in November 2010 from the Supreme Court requiring the company to close down its website, www.actcfx.com.

But in December the website reappeared with a new address, www.fxactc.com. This site has also been shut down.

ASIC has also shut down www.mdafx.com, which offered trading in spot contracts and foreign exchange contracts, after complaints from investors in China.

A third company, Hedge Securities and Investments Pty Ltd, has had its Australian Financial Services licence cancelled after it was discovered its website “included an array of false claims including misrepresenting that various law firms, auditors and investments banks” act for an associated company called Gold Hedge Royalty.

ASIC is also trying to close down the website of a US-based company known as Guardian Wealth, which purports to be an advisory firm specialising in share and derivative strategies. ASIC says it has received about 20 complaints about the company, which is trying to pass itself off as being based in Sydney and regulated by the ASX.

ASIC is now working with US regulators to try and close the website.

ASIC Commissioner, Peter Boxall, said the actions showed the watchdog was serious about protecting investors duped by dubious online operators.

“ASIC will take action against websites that purport to offer online financial services – and the firms or people behind them – where such sites are actually run by unlicensed operators or where other misconduct is apparent.”