Australia's federal court has imposed a record A$300.2 million ($211.37 million) fine against collapsed foreign exchange broker Union Standard and its representatives for misconduct that left customers with millions of dollars in losses, the country's securities regulator said on Friday.
Union Standard International and its representatives, Maxi EFX Global AU and BrightAU Capital, targeted inexperienced and vulnerable investors between 2018 and 2020, pressuring them to deposit more funds and profiting from their losses, the Australian Securities and Investments Commission (ASIC) said.
In 2024, 68% of retail contracts for difference (CFD) investors in Australia lost money, totalling more than A$458 million, including A$73 million in fees, the regulator said.
A CFD is a derivative that lets traders speculate on price moves in assets such as shares, currencies or commodities without owning them.
Customers of EuropeFX and TradeFred lost more than A$83 million, the ASIC said.
The federal court judge ordered A$156.7 million in penalties against Union Standard, A$114.1 million against EuropeFX, and A$29.4 million against TradeFred.
"The penalties were the highest ever secured in connection with an ASIC matter and the outcome would send a strong message of deterrence," ASIC Chair Sarah Court said.
"These record penalties reflect the egregious nature of CFD issuer misconduct in this case," Court said.
