ACM Gold & Forex Trading (Pty) Ltd., a South African brokerage, said it’s in talks with the Financial Services Board after the regulator provisionally withdrew ACM’s authorization to trade as a financial services provider.
“We hope to achieve resolution by next week,” Robyn Francis, a spokeswoman for Johannesburg-based ACM, said Friday in an e-mail. “We are actively working with the FSB on a day-to-day basis to provide them with everything they need.”
The FSB said on Aug. 24 that ACM’s authorization to act as a financial services provider had been withdrawn. The Pretoria-based regulator’s move was prompted by ACM’s links with one of its clients, Colin Davids, Francis said. Davids’s company, Platinum Forex Group, is embroiled in a court case with the FSB over how it handles client money. The dispute has led Platinum Forex to post on its website that “we are not a Ponzi scheme.”
“Davids held a personal account with ACM Gold & Forex Trading, from which he executed various trades in his personal capacity,” Francis said. “Naturally this has had a negative effect on our business and reputation, but we believe that by working with the FSB we will achieve resolution and regain our position in the market.”