GTL TradeUp Pty Ltd
GTL TradeUp Pty Ltd (GTL) is a Sydney-based issuer of over-the-counter derivatives to retail clients and holds an Australian financial services licence. Steven Kugel and Anthony Warner of CRS Warner Kugel were appointed as liquidators of GTL on 30 September 2013.
Investors seeking information about GTL should contact the liquidators in the first instance. The contact details for the liquidators are:
CRS Warner Kugel
Telephone: 1800 210 073
ASIC is aware of recent media reports concerning the status of GTL. ASIC is monitoring developments and continuing to work with the liquidators and other relevant parties as appropriate.
ASIC cancels the licence of GTL Tradeup Pty Ltd
ASIC has cancelled the Australian financial services (AFS) licence of GTL Tradeup Pty Ltd (GTL) as a consequence of the appointment of Steven Kugel and Anthony Warner of CRSWarnerKugel as joint liquidators on 30 September 2013.
GTL has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ASIC is investigating the circumstances of the collapse of GTL and will not be commenting further at this time.
GTL was issued with an AFS licence on 6 January 2011 to carry on a financial services business to deal in, and provide advice on, a range of financial products, including derivatives and foreign exchange contracts.
In their reports to creditors, the liquidators have advised:
that on 25 September 2013, the Director of GTL, Mahmood Riaz and former director Andrew Jeffers approached CRSWarnerKugel and explained their intention to liquidate GTL due to the inability of its main liquidity provider, GTL Trading DMCC (DMCC), to make funds available to meet client requests for withdrawals.
GTL is owed about $4.35m by DMCC. GTL owes about $4.4m to its retail clients.
DMCC is a Dubai based company associated with Mr Riaz.
At the time of issuing the licence Mr Riaz was not an officer of GTL.
Under section 912B of the Corporations Act 2001 (Corporations Act), an AFS licensee that provides a financial service to retail clients must have arrangements for compensating them for loss or damage suffered because of breaches of the relevant obligations under the Corporations Act by the licensee or its representatives. Corporations Regulation 7.6.02AAA provides that such arrangements are subject to the requirement that the licensee (unless exempt) holds adequate professional indemnity (PI) insurance cover. The liquidators have reported to creditors that the current PI insurance policy is in place until 4 January 2014.
Section 915B(3)(b) of the Corporations Act provides that ASIC may cancel an AFS licence held by a body corporate if the body becomes an externally-administered body corporate.
Pursuant to section 915H ASIC has specified that the AFS licence continue in effect for the purposes of ensuring that the compensation arrangements which GTL has in place, namely PI insurance, continue until 4 January 2014 and external dispute resolution arrangements, namely membership with Financial Ombudsman Service Limited (FOS) continue.
Where clients consider they may have a claim for compensation against GTL, ASIC encourages them to set out a written demand against GTL for compensation, with details of their claim, and submit this to the liquidators as soon as possible. Please note that the proof of debt clients may lodge with the liquidators may not of itself constitute such a claim.
If clients are not satisfied with the response from GTL regarding their claim, they can consider a complaint to FOS. More information can be found about FOS at its web address, www.fos.org.au.
Please be aware that ASIC is not able to provide clients with legal advice, or make claims on their behalf. This information is not intended as advice on the prospects of any claim clients may consider they may have or the extent of cover available under the policy. Clients should consider obtaining their own legal advice.
For information to assist you if your investment has been adversely affected or your financial services provider has an external administrator appointed, please visit Problems with your investments on ASIC’s MoneySmart website.
Trouble with debt
The Trouble with debt page on our MoneySmart website also has information to assist you if you are having debt and cash flow issues.