The Australian Securities & Investments Commission announced that the Federal Court has ordered record penalties totaling AUD 300.2 million against collapsed contracts for difference issuer Union Standard International Group Pty Ltd and its former authorised representatives, Maxi EFX Global AU Pty Ltd trading as EuropeFX and BrightAU Capital Pty Ltd trading as TradeFred. The penalties relate to systemic unconscionable conduct and other contraventions between 2018 and 2020. The ruling also reinforces that an Australian financial services licensee remains fully accountable for misconduct carried out under its licence. The Court imposed penalties of AUD 156.7 million on Union Standard, AUD 114.1 million on EuropeFX and AUD 29.4 million on TradeFred. Customers of EuropeFX and TradeFred lost more than AUD 83 million. The misconduct included targeting inexperienced and vulnerable customers, using aggressive sales tactics to pressure them into trading high-risk CFDs, making misleading representations, failing to explain the products and risks adequately, and providing personal advice without a licence. In addition to the pecuniary penalties, the Court ordered an adverse publicity order against EuropeFX, permanently restrained it from carrying on a financial services business or providing financial product advice, and required it to refund customers' net deposits. The case also marks the first time a civil penalty has been imposed on an entity for failing to ensure financial services were provided efficiently, honestly and fairly by marketing and issuing CFDs to customers in China when it knew, or ought to have known, those customers faced potential liability under local Chinese law. The orders have been temporarily stayed until 13 July 2026.
Australian Securities & Investments Commission2026-06-12
Australian Securities & Investments Commission secures record AUD 300.2 million penalties over Union Standard CFD misconduct
The Australian Securities & Investments Commission said the Federal Court imposed record penalties of AUD 300.2 million on Union Standard, EuropeFX and TradeFred for systemic unconscionable conduct and other breaches tied to CFD sales between 2018 and 2020. The decision holds Union Standard liable as the AFS licensee for misconduct by its authorised representatives and adds a permanent restraint, adverse publicity order and customer refund order against EuropeFX. The orders are stayed until 13 July 2026.