Moga International Group To Pay $38,000 After Preventing Client Withdrawal
Moga International Group has been directed by AFCA to pay back a client’s account balance of $38,612.73 after refusing their withdrawal request.
Complaint
In August 2021, the complainant opened an online Contracts for Difference (CFD) trading account which allegedly was provided by Moga International Group Pty Ltd. He said he wished to withdraw funds from the trading account, but the financial firm denied the withdrawal request.
The complainant seeks the return of his USD $38,612.73 account balance. Moga International Group says the complainant is not their client, but a client of a related entity, Company M. As Company M is outside of AFCA’s jurisdiction, no compensation is payable.
Another case against Moga International Group was brought in front of the AFCA recently. The financial firm was again accused of withholding funds in relation to CFDs.
Issues and Key Findings
What Aspects Of The Complaint Can AFCA Deal With?
AFCA may deal with this complaint given there is sufficient connection to Australia and the financial firm has provided a Financial Service to the complainant.
Should The Financial Firm Process The Withdrawal Request?
Yes. The relevant terms indicate the complainant is entitled to make a withdrawal of the positive cash balance showing on his account.
Why Is The Outcome Fair?
The financial firm has not provided sufficient evidence to support its position despite opportunities to do so and has presented no basis at all for its decision to refuse the complainant’s withdrawal request. It is fair it returns the complainant’s monies.
Determination
This determination is in favour of the complainant.
Within 7 days of the date, Moga International Group is advised of the complainant’s acceptance of this determination, it must pay to the complainant USD $38,612.73 plus interest on the amount owing to the complainant calculated at a rate of the Reserve Bank of Australia’s official base rate, plus 4%, from 18 January 2022 to the date of payment.
For the avoidance of doubt, the financial firm must carry any associated costs of doing so.
Legal Help After Bad Financial Advice
If you think you’ve received bad financial advice and would like to discuss your experience with us, reach out to our expert legal team. We are committed to making sure our clients receive the best possible advice and guidance on their situation, especially in financial matters. You can contact us online, call us at 1300 433 533 or email us at enquiry@fdlegal.com.au.
