83 year old investor wins landmark case against IronFxMelbourne, Australia – Both the Australian Financial Complaints Authority (AFCA) and our client, an 83-year-old French investor, achieved a major victory when the client was awarded a significant compensation for the loss of his life savings when trading CFD at IronFX’s trading platform.
IronFX’s trading platform (www.ironfx.com) is currently operated by the company Notesco Ltd, registered in Bermuda. Notesco group includes different entities specialized in CFD trading that operate several trading platforms, such as www.fxlift.com or www.fxgiants.com which are not authorized and regulated in the EU, or www.fxlift.eu and www.ironfx.eu operated by Notesco Financial Services Limited under CySEC authorization.
The client, granted anonymity, opened accounts with IronFX in 2019 and appointed a third-party company to manage them. After suffering large losses, despite repeated promises of profits, the client began to question whether he had been a victim of an investment scam.
As a complete novice at CFD trading, he approached Mr. Konstantin Mikov, Founder of the Law Firm Mikov & Attorneys and Financial Fraud Lawyer Network, to review his case and represent his interests in the dispute with IronFX.
The case analysis indicated numerous violations by the broker that resulted in the loss of the client’s investment while trading on IronFX’s platform, including breaches of suitability assessment obligations.
Our client’s case was submitted to the AFCA to decide on his right to compensation.
IronFX, through the company Notesco Pty Ltd, denied responsibility, claiming it met its assessment requirements and was not liable for the third party’s actions.
After reviewing the case, the AFCA panel ruled in favor of the client twice, pointing out, among other things, anomalies in the suitability questionnaire that should have raised red flags for IronFX given the inherent risks of CFDs. Both AFCA’s Decisions have been challenged by IronFX through Notesco Pty Ltd before the Australian courts, which ultimately dismissed IronFX’s claims.
While taking into consideration the client’s involvement with the third party, the AFCA panel deemed IronFX’s inadequate due diligence a major contributing factor and therefore ordered Notesco Pty Ltd to compensate our client for a substantial portion of the invested and lost money while trading on IronFX’s platform.
“This case underscores the importance of robust suitability assessments and client protection, especially for complex financial products like CFDs,” stated Konstantin Mikov. “We are pleased with this outcome of such a difficult case, which will allow the client to obtain compensation for investment losses due to the broker’s misconduct in assessing the suitability of its financial products.” This landmark win, handled by the dedicated legal team at www.financial-fraud.lawyer, reinforces Law Firm Mikov’s determination to defend investors’ rights in disputes with investment brokers.
