‘Wolf of Wall St atmosphere’: Forex CT fined $20m for misconduct

ASIC alleged Forex CT’s pay system included inherent conflicts that drove its account managers to put their own interests and the interests of Forex CT over their customers. This included deliberately pushing clients into margin call positions and then warning customers if they did not deposit more cash to clear out their position their account would be closed, the court heard.

“The remuneration and bonus structure incentivised account managers to encourage their clients to deposit money and to discourage them from making withdrawals, irrespective of whether or not that was in the interests of the particular client,” counsel for ASIC, Chris Horan, QC said.

“Essentially the system involved something that was designed or intended by Forex CT to achieve an outcome that maximised its own gain and ultimately profit at the expense of the interests of clients to whom it was providing personal advice, and was unfair to those clients in it sought to take advantage of them,” Mr Horan said.

Justice Middleton will release his reasons for his penalty judgment at a later date.