Moga International To Pay $15,000 After Client Unable Access Account
Moga International Group has been directed to pay $15,000 as a result of a client’s inability to access their trading account.
Complaint
In August 2021, the complainant, Mr V, opened a CFD trading account. Mr V’s attempts to withdraw the balance from his account were unsuccessful. Mr V says that Moga International Group Pty Ltd provided a financial service to him and is responsible for his unsuccessful withdrawals. Mr V wants the financial firm to pay to him the balance in the account, namely USD $15,733.83.
The financial firm says that an associated corporate entity, XYZ LLC, maintains the account. It says that Mr V’s arrangement concerning the CFDs is with XYZ LLC. The financial firm says it is not responsible for unsuccessful attempts.
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
Did The Financial Firm Provide A Financial Service To Mr V?
Moga International Group, XYZ LLC, and a third corporate entity, XYZ Ltd, as part of a common enterprise, provided a financial service to Mr V. Collectively they onboarded Mr V, took his money, and facilitated the trading of CFDs.
Should The Financial Firm Pay Mr V His Balance?
It was incumbent on Moga International Group to ensure mechanisms were in place that allowed Mr V to effectively withdraw the balance in his trading account when he wanted to. The financial firm did not ensure this. In such circumstances, they should make good the loss incurred by Mr V.
Why Is The Outcome Fair?
Moga International Group provided Mr V with a financial service. They were required to ensure mechanisms were in place that allowed Mr V to effectively withdraw the balance in his trading account. They did not do this, and Mr V incurred a loss. It is fair that they put Mr V in the position that he would have been in had the withdrawal requests been successful.
Determination
This determination is in favour of Mr V. The financial firm is to pay Mr V USD $15,733.83.
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