Federal Court of Australia

Woodhouse (Liquidator), in the matter of Forex Capital Trading Pty Ltd (in liq) (No 2) [2026] FCA 627

ORDERS

THE COURT ORDERS THAT:

1. Pursuant to s 90-15 of the Insolvency Practice Schedule (Corporations) (IPS) (being Sch 2 of the Corporations Act 2001 (Cth)):

(a) the timeframe for notice of an intention to declare a dividend prescribed in reg 5.6.65(1) of the Corporations Regulations 2001 (Cth) be extended to a date not more than 4 months before the intended date by which the plaintiffs intend to declare a final dividend;

(b) the timeframe for the plaintiffs to deal with formal proofs of debt and claims prescribed in reg 5.6.66(1) of the Regulations be extended to 21 days;

(c) the plaintiffs do not need to comply with reg 5.6.54, reg 5.6.66(1)(c)(iii) or reg 5.6.66(1)(d) of the Regulations in respect of the partial rejection of Discounted Net Loss Claims where a creditor agrees to have their claim admitted on the basis of their Net Loss incurred during the Extended Period, at 85% of its face value;

(d) the plaintiffs are deemed to have complied with reg 5.6.48(1), reg 5.6.48(2) and reg 5.6.65(1)(b) of the Regulations by distributing to former customers and creditors of the Company the notices set out in Annexures B, C, D, E and  F to the orders, as applicable to each former customer and creditor, using the email addresses for those former customers and creditors as they appear in the Company’s books and records;

(e) compliance by a creditor with the processes described in Annexures B, C, D, E and F to these orders as applicable is deemed to comply with the requirements for formal proof of debt under reg 5.6.50 of the Regulations;

(f) completion of the appropriate form as set out in Annexures G and H by each creditor is deemed to comply with the requirements of reg 5.6.49 of the Regulations;

(g) the plaintiffs are not required to take any further action if there is no response to the notices distributed to former customers and creditors in accordance with these orders;

(h) a notice to creditors with Admitted Claims substantially in accordance with Annexure I of these orders is deemed to comply with reg 5.6.67(3) of the Regulations; and

(i) the plaintiffs are authorised to distribute dividends in respect of Admitted Claims by means of electronic funds transfer or such other means as may be agreed between the plaintiffs and a creditor and are otherwise relieved of their obligations under reg 5.6.67(3) of the Regulations.

2. Pursuant to s 90-15 of the IPS the plaintiffs are justified and acting properly in treating each of the amounts held by them in the Client Funds Account (as defined in the third supporting affidavit of Mr Woodhouse filed 13 March 2026) in respect of a particular former customer, and are less than $20, as assets of the Company to be distributed among creditors in accordance with these orders.

3. Pursuant to s 90-15 of the IPS, notwithstanding the operation of s 554C of the Corporations Act, the plaintiffs were, and are, justified and acting properly by using the AUD:USD exchange rate published by the Reserve Bank of Australia on each day as the basis for the conversion of amounts denominated in USD for the purposes of calculating creditors’ claims, including those of former customers, when calculating the value of the Net Loss.

4. The plaintiffs have liberty to apply on 2 business days’ notice.

5. The costs of this application be costs in the liquidation of the Company.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Annexure B

[Admitted Discount Creditors]

[FTI Consulting Letterhead]

Dear [insert name of Former Customer]

Forex Capital Trading Pty Limited ACN 119 086 270 (in liquidation) (“Company” or “ForexCT”)

This is an important email and it has been approved for sending by the Federal Court of Australia.

We refer to the appointment of Ross Andrew Blakeley and me, Daniel Hillston Woodhouse, of FTI Consulting (“FTI”) as liquidators (“Liquidators”) of the Company, by the Federal Court of Australia on 7 December 2021.

You should read this email in conjunction with our notice of [insert date of publication of Notice of Application] (“Notice of Application”), which is available on our website: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

You are receiving this email because you previously participated in the Liquidators’ Expedited Adjudication Process which was conducted in May and June 2022.  

During the Expedited Adjudication Process, you accepted a 15% discount on the value of the Net Loss you suffered based on your trading with the Company between 1 January 2017 and 1 April 2019 (“Relevant Period”).  

Accordingly, the Liquidators adjudicated your claim and it was admitted to proof against the Company for the value of $[insert], being your Net Loss less a 15% discount (“Admitted Discounted Claim”).  This makes you an Admitted Discount Creditor.

As set out in our Notice of Application, the Liquidators are now preparing to make distributions to creditors of the Company where their claims have been admitted.

As an Admitted Discount Creditor, you now have a choice as to how you would like the Liquidators to proceed and deal with your claim against the Company.

The Liquidators have obtained orders from the Federal Court of Australia which permit them to extend the period of time for which they may admit your claim against the Company without you needing to submit supporting evidence to substantiate your claim. Instead of your claim being calculated by reference to your Net Loss during the Relevant Period, the Liquidators now propose to calculate your claim by reference to your Net Loss for the period 1 January 2016 to 27 June 2021.  We refer to this as the Extended Period.  

Similarly to the Expedited Adjudication Process, the Liquidators propose to admit a claim on your behalf based on the value of the Net Loss you suffered during the Extended Period, with a 15% discount being applied so you can avoid the need to submit documents to substantiate your claim. We refer to this as your Extended Claim.

Option One: you can agree to accept your Extended Claim.

Your distribution will be based on the value of your Extended Claim. You will be asked to confirm your bank details so the Liquidators can pay any dividend into your preferred bank account.  

You will be taken to an online form to confirm the value of your Extended Claim and your bank details.

Option Two: you can reject your Extended Claim and submit a proof of debt instead.  

You will need to complete an online proof of debt form setting out the amount and details of your claim or debt against the Company and provide evidence to support your claim.  The Liquidators will then adjudicate your claim and inform you of the outcome in due course.

Your distribution will be based on the admitted value of these claims only.

By selecting this option, you are agreeing to forgo any claim which was previously admitted to proof against the Company through the Expedited Adjudication Process.

If you do not select one of these options and complete the relevant form by [insert], you will be deemed to have accepted Option One. The Liquidators will use your previously submitted information, and the value of your Extended Claim for the purposes of calculating any distribution to you.

How much will I be paid?

Our initial estimate is that the dividend range will be between 5 and 10 cents in the dollar. That is, for every $1 claim creditors have, 5-10c is expected to be paid. The final dividend amount will vary depending on:

* the final value of all claims admitted in the liquidation; and

* the costs involved in adjudicating claims and paying the dividend.

Beware of scams impersonating the Liquidators/FTI Consulting

To be very clear, we will never ask you to:

* give access to your electronic devices;

* download any software or apps;

* login to your email or bank accounts – either with or without us viewing your device;

* transfer money to the Liquidators, FTI Consulting, or any other party;

* contribute to the cost of any payment, whether that be our costs or transaction fees; or

* provide us with your passwords.

The Liquidators have obtained orders from the Federal Court of Australia in relation to this notice.  A copy of these orders is available on our website and from the Federal Court of Australia.

Questions and contact details

Our email address for queries is fxct@fticonsulting.com.  We also have a messaging service that you can call and provide your details and leave a question or message to call you back.  That number is (08) 6430 1313.

Yours sincerely

……………………………
Daniel Woodhouse
Liquidator

Annexure C

[Non-Electing Creditors]

[FTI Consulting Letterhead]

Dear [insert name of Former Customer]

Forex Capital Trading Pty Limited ACN 119 086 270 (in liquidation) (“Company” or “ForexCT”)

This is an important email and it has been approved for sending by the Federal Court of Australia.

We refer to the appointment of Ross Andrew Blakeley and me, Daniel Hillston Woodhouse, of FTI Consulting (“FTI”) as liquidators (“Liquidators”) of the Company, by the Federal Court of Australia on 7 December 2021.

You should read this email in conjunction with our notice of [insert date of publication of Notice of Application] (“Notice of Application”), which is available on our website: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

You are receiving this email because you previously rejected a 15% discount on the value of the “net loss” you suffered based on your trading with the Company between 1 January 2017 and 1 April 2019 (“Relevant Period”).  This was the Discounted Adjudication.  

When you rejected the Discounted Adjudication, you indicated:

“I do not wish to accept the Discounted Adjudication and I understand I may be excluded from certain distributions from the Company by not accepting the Discounted Adjudication at this point in time.”

This makes you a Non-Electing Creditor.

As set out in our Notice of Application, the Liquidators are now preparing to make distributions to creditors of the Company where their claims have been admitted.

As a Non-Electing Creditor, you now have a choice as to how you would like the Liquidators to proceed.

The Liquidators have obtained orders from the Federal Court of Australia which permit them to extend the period of time for which they may admit your claim against the Company without you needing to submit supporting evidence to substantiate your claim. Instead of your claim being calculated by reference to your Net Loss during the Relevant Period, the Liquidators now propose to calculate your claim by reference to your Net Loss for the period 1 January 2016 to 27 June 2021.  We refer to this as the Extended Period.  

Similarly to the Expedited Adjudication Process, the Liquidators propose to admit a claim on your behalf based on the value of the Net Loss you suffered during the Extended Period, with a 15% discount being applied so you can avoid the need to submit documents to substantiate your claim. We refer to this as your Extended Claim.

Option 1: you can choose to now agree to an Extended Claim being submitted on your behalf.    

Your distribution will be based on the value of your Extended Claim. You will be asked to confirm your bank details so the Liquidators can pay any dividend into your preferred bank account.  

You will be taken to an online form to confirm the value of your Extended Claim and your bank details.

Option Two: you can reject your Extended Claim and submit a proof of debt instead.  

You will need to complete an online proof of debt form setting out the amount and details of your claim or debt against the Company and provide evidence to support your claim.  The Liquidators will then adjudicate your claim and inform you of the outcome in due course.

Your distribution will be based on the admitted value of these claims only.

By selecting this option, you are agreeing to forgo any claim which was previously admitted to proof against the Company through the Expedited Adjudication Process.

If you do not select one of these options and complete the relevant form by [insert], you will not have an admitted claim against the Company, and pursuant to reg 5.6.65 of the Corporations Regulations 2001 (Cth), will not be entitled to participate in any distribution from the Company.  

How much will I be paid?

Our initial estimate is that the dividend range will be between 5 and 10 cents in the dollar. That is, for every $1 claim creditors have, 5-10c is expected to be paid. The final dividend amount will vary depending on:

* The final value of all claims admitted in the liquidation; and

* The costs involved in adjudicating claims and paying the dividend.

Beware of scams impersonating the Liquidators/FTI Consulting

To be very clear, we will never ask you to:

* give access to your electronic devices;

* download any software or apps;

* login to your email or bank accounts – either with or without us viewing your device;

* transfer money to the Liquidators, FTI Consulting, or any other party;

* contribute to the cost of any payment, whether that be our costs or transaction fees; or

* provide us with your passwords.

The Liquidators have obtained orders from the Federal Court of Australia in relation to this notice.  A copy of these orders is available on our website and from the Federal Court of Australia’s website: [insert].

Questions and contact details

Our email address for queries is fxct@fticonsulting.com.  We also have a messaging service that you can call and provide your details and leave a question or message to call you back.  That number is (08) 6430 1313.

Yours sincerely

……………………………..
Daniel Woodhouse
Liquidator

Annexure D

[Potential Former Customer Creditors]

[FTI Consulting Letterhead]

Dear [insert name of Former Customer]

Forex Capital Trading Pty Limited ACN 119 086 270 (in liquidation) (“Company” or “ForexCT”)

This is an important email and it has been approved for sending by the Federal Court of Australia.

We refer to the appointment of Ross Andrew Blakeley and me, Daniel Hillston Woodhouse, of FTI Consulting (“FTI”) as liquidators (“Liquidators”) of the Company, by the Federal Court of Australia on 7 December 2021.

You should read this email in conjunction with our notice of [insert date of publication of Notice of Application] (“Notice of Application”), which is available on our website: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

The Liquidators are now in the process of finalising their adjudication of claims against the Company.  This will result in distributions being paid to creditors in respect of admitted claims against the Company.

However, based on the Liquidators’ reviews of the books and records of the Company, we consider you:

(a) may have been a customer who traded with the Company between 1 January 2017 and 1 April 2019 (“Relevant Period”); and

(b) have not yet registered a claim against the Company, or did not participate in the Liquidators’ Expedited Adjudication Process which was conducted in May and June of 2022.

As such, you are a Potential Former Customer Creditor.

What was the Expedited Adjudication Process?

The Liquidators obtained orders from the Federal Court in May 2022 to allow them to conduct the Discounted Adjudication Process in respect of the claims of former customers who suffered loss and damage trading with the Company in the Relevant Period.  

During the Expedited Adjudication Process, you were invited to submit a proof of debt for the amount of your Net Loss (being the amount you deposited in the Relevant Period, less any withdrawals made), without being required to do more.  Recognising that not every claim could be determined on an individual basis, without requiring creditors to submit extensive supporting evidence, the Liquidators obtained orders which allowed them to accept claims of Potential Former Customer Creditors by applying a modest discount of 15% to the value of their Net Loss.  

The Liquidators did not receive a response from you in relation to the Expedited Adjudication Process.

What is happening now?

The Liquidators have obtained orders from the Federal Court of Australia which permit them to extend the period of time for which they may admit your claim against the Company without you needing to submit supporting evidence to substantiate your claim. Instead of your claim being calculated by reference to your Net Loss during the Relevant Period, the Liquidators now propose to calculate your claim by reference to your Net Loss for the period 1 January 2016 to 27 June 2021.  We refer to this as the Extended Period.  

Similarly to the Expedited Adjudication Process, the Liquidators propose to admit a claim on your behalf based on the value of the Net Loss you suffered during the Extended Period, with a 15% discount being applied so you can avoid the need to submit documents to substantiate your claim. We refer to this as your Extended Claim.

There are two options available to you.

Option 1: you can choose to now agree to an Extended Claim being submitted on your behalf.    

Your distribution will be based on the value of your Extended Claim. You will be asked to confirm your bank details so the Liquidators can pay any dividend into your preferred bank account.  

You will be taken to an online form to confirm the value of your Extended Claim and your bank details.

Option Two: you can reject your Extended Claim and submit a proof of debt instead.  

You will need to complete an online proof of debt form setting out the amount and details of your claim or debt against the Company and provide evidence to support your claim.  The Liquidators will then adjudicate your claim and inform you of the outcome in due course.

Your distribution will be based on the admitted value of these claims only.

If you do not select one of these options and complete the relevant form by [insert], you will not have an admitted claim against the Company, and, pursuant to reg 5.6.65 of the Corporations Regulations 2001 (Cth), will not be entitled to participate in any distribution from the Company.  

How much will I be paid?

Our initial estimate is that the dividend range will be between 5 and 10 cents in the dollar. That is, for every $1 claim creditors have, 5-10c is expected to be paid. The final dividend amount will vary depending on:

* the final value of all claims admitted in the liquidation; and

* the costs involved in adjudicating claims and paying the dividend.

Beware of scams impersonating the Liquidators/FTI Consulting

To be very clear, we will never ask you to:

* give access to your electronic devices;

* download any software or apps;

* login to your email or bank accounts – either with or without us viewing your device;

* transfer money to the Liquidators, FTI Consulting, or any other party;

* contribute to the cost of any payment, whether that be our costs or transaction fees; and

* provide us with your passwords.

Questions and contact details

Our email address for queries is fxct@fticonsulting.com.  We also have a messaging service that you can call and provide your details and leave a question or message to call you back.  That number is (08) 6430 1313.

Yours sincerely

……………………………
Daniel Woodhouse
Liquidator

Annexure E

[Prior Settlement Creditors]

[FTI Consulting Letterhead]

Dear [insert name of Former Customer]

Forex Capital Trading Pty Limited ACN 119 086 270 (in liquidation) (“Company” or “ForexCT”)

This is an important email and it has been approved for sending by the Federal Court of Australia.

We refer to the appointment of Ross Andrew Blakeley and me, Daniel Hillston Woodhouse, of FTI Consulting (“FTI”) as liquidators (“Liquidators”) of the Company, by the Federal Court of Australia on 7 December 2021.

You should read this email in conjunction with our notice of [insert date of publication of Notice of Application] (“Notice of Application”), which is available on our website: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

You are receiving this email because you previously chose to participate in the Discounted Adjudication process.  

However, your claim was not admitted by the Liquidators because the Company’s books and records indicated you had entered into a settlement deed with the Company prior to the commencement of the Company’s winding up on 27 June 2021.  Accordingly, the Liquidators did not consider you had a claim against the Company which could be admitted as part of the Discounted Adjudication process.  At present, you do not have an admitted claim against the Company.  This makes you a Prior Settlement Creditor.

As set out in our Notice of Application, the Liquidators are now preparing to make distributions to creditors of the Company where their claims have been admitted.  

As a Prior Settlement Creditor, you can still submit a proof of debt to the Liquidators for them to consider your claim against the Company.  To do so, you will need to complete an online form setting out the amount and details of your claim or debt against the Company and providing evidence to support your claim.  This should include information about why you believe the settlement was not legally binding or you still have a claim against the Company.  The Liquidators will then adjudicate your claim and inform you of the outcome in due course.  

If you would like to submit a proof of debt, please use the button below and follow the prompts.  

If you do not click the above and complete the form by [insert], pursuant to reg 5.6.65(3) of the Corporations Regulations 2001 (Cth), you will be excluded from participating in any distribution from the Company.

How much will I be paid?

Our initial estimate is that the dividend range will be between 5 and 10 cents in the dollar. That is, for every $1 claim creditors have, 5-10c is expected to be paid. The final dividend amount will vary depending on:

* the final value of all claims admitted in the liquidation; and

* the costs involved in adjudicating claims and paying the dividend.

Beware of scams impersonating the Liquidators/FTI Consulting

To be very clear, we will never ask you to:

* give access to your electronic devices;

* download any software or apps;

* login to your email or bank accounts – either with or without us viewing your device;

* transfer money to the Liquidators, FTI Consulting, or any other party;

* contribute to the cost of any payment, whether that be our costs or transaction fees; or

* provide us with your passwords.

Questions and contact details

Our email address for queries is fxct@fticonsulting.com.  We also have a messaging service that you can call and provide your details and leave a question or message to call you back.  That number is (08) 6430 1313.

Yours sincerely

………………………….
Daniel Woodhouse
Liquidator

Annexure F

[Non-Relevant Period Creditors]

[FTI Consulting Letterhead]

Dear [insert name of Former Customer]

Forex Capital Trading Pty Limited ACN 119 086 270 (in liquidation) (“Company” or “ForexCT”)

This is an important email and it has been approved for sending by the Federal Court of Australia.

We refer to the appointment of Ross Andrew Blakeley and me, Daniel Hillston Woodhouse, of FTI Consulting (“FTI”) as liquidators (“Liquidators”) of the Company, by the Federal Court of Australia on 7 December 2021.

You should read this email in conjunction with our notice of [insert date of publication of Notice of Application] (“Notice of Application”), which is available on our website: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

You are receiving this email because you previously chose to participate in the Discounted Adjudication process.  

However, upon adjudication, your claim was not admitted by the Liquidators, because you did not suffer a loss as a result of your trading with the Company between 1 January 2017 and 1 April 2019 (“Relevant Period”).  

As a result, the Liquidators were not able to admit your claim against the Companies through the Discounted Adjudication Process.  At present, you do not have an admitted claim against the Company, but you may still have a claim against the Company.  This makes you a Non-Relevant Period Creditor.

What is happening now?

As set out in our Notice of Application, the Liquidators are now preparing to make distributions to creditors of the Company where their claims have been admitted.  

The Liquidators have obtained orders from the Federal Court of Australia which permit them to extend the period of time for which they may admit your claim against the Company without you needing to submit supporting evidence to substantiate your claim. Instead of your claim being calculated by reference to your Net Loss during the Relevant Period, the Liquidators now propose to calculate your claim by reference to your Net Loss for the period 1 January 2016 to 27 June 2021.  We refer to this as the Extended Period.  

Similarly to the Expedited Adjudication Process, the Liquidators propose to admit a claim on your behalf based on the value of the Net Loss you suffered during the Extended Period, with a 15% discount being applied so you can avoid the need to submit documents to substantiate your claim. We refer to this as your Extended Claim.

As a Non-Relevant Period Creditor, you have two choices.

Option One: you can agree to accept your Extended Claim.

Your distribution will be based on the value of your Extended Claim. You will be asked to confirm your bank details so the Liquidators can pay any dividend into your preferred bank account.  

You will be taken to an online form to confirm the value of your Extended Claim and your bank details.

Option Two: you can reject your Extended Claim and submit a proof of debt instead.  

You will need to complete an online proof of debt form setting out the amount and details of your claim or debt against the Company and provide evidence to support your claim.  The Liquidators will then adjudicate your claim and inform you of the outcome in due course.

Your distribution will be based on the admitted value of these claims only.

By selecting this option, you are agreeing to forgo any claim which was previously admitted to proof against the Company through the Expedited Adjudication Process.

If you do not select one of these options and complete the relevant form by [insert], you will be deemed to have accepted Option One. The Liquidators will use your previously submitted information, and the value of your Extended Claim for the purposes of calculating any distribution to you.

How much will I be paid?

Our initial estimate is that the dividend range will be between 5 and 10 cents in the dollar. That is, for every $1 claim creditors have, 5-10c is expected to be paid. The final dividend amount will vary depending on:

* the final value of all claims admitted in the liquidation; and

* the costs involved in adjudicating claims and paying the dividend.

Beware of scams impersonating the Liquidators/FTI Consulting

To be very clear, we will never ask you to:

* give access to your electronic devices;

* download any software or apps;

* login to your email or bank accounts – either with or without us viewing your device;

* transfer money to the Liquidators, FTI Consulting, or any other party;

* contribute to the cost of any payment, whether that be our costs or transaction fees; or

* provide us with your passwords.

Questions and contact details

Our email address for queries is fxct@fticonsulting.com.  We also have a messaging service that you can call and provide your details and leave a question or message to call you back.  That number is (08) 6430 1313.

Yours sincerely

…………………………….
Daniel Woodhouse
Liquidator

Annexure G

[Information relating to the Discounted Adjudication]

[Former Customer Claim Form]

Forex Capital Trading Pty Ltd (in liq) ACN 119 086 270

Verification:

Please insert your unique Former Customer Claim Number that was sent to you by email:

Section 1 – Former Customer Details

Please ensure these details are accurate

Are the above details correct?

[If “Yes” is selected, the Former Customer will proceed to Section 2.

If “No” is selected, the Former Customer will got to section 1.1]

Section 1.1 – Former Customer Details (Update)

Please provide the correct Former Customer details.  The name must match the name of the person who opened the account with the Company. If the name does not match, the Liquidators may not be able to assess your claim:

Section 2 – Complaints to AFCA or other settlements

Have you previously made a complaint to the Company or to the Australian Financial Complaints Authority (AFCA)?

[If “No” the Former Customer will proceed to Section 3.

If “Yes” the Former Customer will be asked the following questions]

Were you ever awarded an amount to be paid to you as a result of a complaint you made to the Company or the Australian Financial Complaints Authority (AFCA)?

[If “Yes”, the Former Customer will be asked the following two questions

If “No”, the Former Customer will progress to Section 4]

If yes, what amount did you receive from the Company as a result of a complaint or AFCA determination?

Please upload a copy of the AFCA determination or any deed of release you entered into.

Were you ever paid this amount of money/

(If yes, you may no longer have a claim against the Company, and you will need to provide the Liquidators with a copy of any deed of settlement to allow your claim to be calculated)

Section 3 – Confirm bank details

Please confirm the bank details (for an Australian bank account) you wish to nominate to have any dividend paid into:

Section 4 – Your Claim

Based on the Liquidators’ review of the audited financial records of the Company, your Net Loss* has been calculated as:

*Your Net Loss has been calculated on the basis of the amounts you deposited in your account with the Company, less any withdrawals that you made during the period 1 January 2016 to 27 June 2021.  This methodology for calculating your Net Loss has been approved by the Federal Court of Australia: https://www.fticonsulting.com/creditors/forex-capital-trading-pty-ltd.

If your claim is based on an AFCA determination or deed of release to substantiate your claim, your loss will be based on the amount indicated in that determination or deed of release if it has not yet been paid.

As a result of the alternative adjudication process that has been approved by the Court, the Liquidators are able to admit claims at 85% of their face value, without Former Customers needing to provide any further substantiation of their claim (“Discounted Adjudication”).

If you choose to accept the Discounted Adjudication, your claim will be admitted for the value of:

If you wish to accept the Discounted Adjudication, and understand your claim will be admitted at 85% of its face value, please click “Confirm”.  For the avoidance of doubt, this is not the amount you will receive as a dividend.  The Liquidators estimate the final amount you will be paid as a dividend will be between 5 and 10 cents in the dollar, and will depend on a number of factors.  For more information about the factors which may influence the final dividend amount, refer to the “How much will I be paid?” section in our previous notice published on [insert date on which Annexure A was published].

Annexure H

[Online Proof of Debt Form]

Pursuant to orders of the Federal Court of Australia made on [insert], this online form is deemed to comply with the requirements of reg 5.6.49(2).

Forex Capital Trading Pty Ltd (in liq) ACN 119 086 270

This is to state that the Company was on 27 June 2021, and still is, justly and truly indebted to:

[insert name]

[insert address]

For the amount of $[insert quantum of claim against the Company].

The debt arises because of:

[insert short summary of claim].

Choose one:

Please upload documents supporting your claim below:

[insert upload function]

Annexure I

[Declaration of dividend form]

NOTICE OF DECLARATION OF DIVIDEND

Pursuant to orders of the Federal Court of Australia made on [insert], this online form is deemed to comply with the requirements of reg 5.6.67(3).

Forex Capital Trading Pty Ltd (in liq) ACN 119 086 270 Final dividend

A final dividend at the rate of [insert] cents in the dollar has been declared for the Company.

You will receive an electronic funds transfer for the amount of $[insert] calculated at that rate on your debt as admitted to rank for dividend for $[insert].

Dated

…………………………………
Daniel Woodhouse
Liquidator

FTI Consulting
Level 42, Central Park Tower
152-156 St Georges Terrace
Perth WA 6000

REASONS FOR JUDGMENT

BANKS-SMITH J:

1 Forex Capital Trading Pty Ltd (in liq) held an Australian Financial Services Licence (AFSL).  It has many aggrieved former customers who suffered losses as a result of advice from Forex as to trading in high-risk products, including over-the-counter derivatives.

2 The liquidators were left to deal with claims from some 8,600 former customers.

The adjudication application

3 The liquidators approached the Court in May 2022 for orders to facilitate an abridged and expedited process for admission and adjudication of claims.  At that time, the liquidators considered it necessary to urgently put in place such process to protect the potential to bring a claim under a Letter of Comfort provided by Forex’s ultimate holding company, Invesus Group Limited. The Letter of Comfort had a termination date of 30 June 2022.  It was not at that time known whether the Letter of Comfort would respond to the claims specified by the liquidators, but having regard to the time constraint, the liquidators chose to proceed on the assumption that it would do so.

4 I made orders facilitating the regime proposed by the liquidators, exercising powers under s 90-15 of Sch 2 (Insolvency Practice Schedule (Corporations)) to the Corporations Act 2001 (Cth) (IPS):  Woodhouse (Liquidator), in the matter of Forex Capital Trading Pty Ltd (in liq) [2022] FCA 600.  The liquidators referred to this as the adjudication application.

5 In short, the orders made on the adjudication application provided for a regime where former Forex customers were invited by the liquidators to submit proofs of debt in a form proposed by the liquidators for the net trading losses they suffered during the period 1 January 2017 to 1 April 2019, and to permit the liquidators to admit those proofs of debt for 85% of the amount claimed notwithstanding that the customers were not required to provide additional information establishing their claims.  This was in circumstances where the liquidators had the books and records of Forex, including account details that permitted them to assess a customer’s net losses.  Further relevant circumstances included that the liquidators disclosed the basis upon which they drew inferences as to liability, and that it was not practicable to undertake individual assessments of each claim of a former customer (Forex Capital Trading at [43]-[47], [64]-[71]).  Forex customers who did not wish to take up the invitation could maintain a claim for a formal adjudication by submitting a proof of debt if they wished to do so.

Realised assets

6 The liquidators implemented the regime under the orders and served a demand on Invesus by 30 June 2022, which was not met.  The liquidators were unsuccessful in enforcing the demand at first instance (Forex Capital Trading Pty Ltd (in liquidation) v Invesus Group Limited [2024] NSWSC 867), and on appeal (Forex Capital Trading Pty Ltd (in liq) v Invesus Group Ltd [2025] NSWCA 64).

7 However, separately the liquidators recovered an amount of $11.5 million from ASIC in settlement of certain claims for unfair preferences and voidable transactions.  After deducting the litigation funding premium and costs of the liquidation (most of which has been approved by a committee of inspection) and other priority payments in accordance with s 556(1) of the Corporations Act, the liquidators estimate an amount of approximately $4.1 million will be available for distribution to creditors.  Those creditors are primarily Forex’s former customers.

The dividend application

8 In March 2026 the liquidators approached the Court for further orders, aimed at facilitating the payment of any dividend and drawing the liquidation to a close. They referred to this second application as the dividend application, again seeking the exercise of power under s 90-15 of the IPS.

9 These reasons assume familiarity with the reasons published in the adjudication application, particularly in relation to the scope of the power under s 90-15 of the IPS. The power is frequently employed for the giving of judicial directions or advice of the kind that used to be provided under s 479(3) and s 511 of the Corporations Act.  However, the authorities confirm that it is wider than that and ‘accommodates the determination of substantive rights’: In the matter of Hawden Property Group Pty Ltd (in liq) [2018] NSWSC 481 at [8] (Gleeson JA); One T Development Pty Ltd v Krejci in his capacity as liquidator of ENA Development Pty Ltd [2023] NSWCA 120 at [33]-[35].

10 At a case management hearing on 26 March 2026, orders were made directing notification to creditors about the dividend application. The notice regime provided for copies of a specified notice, dividend application and supporting affidavit of liquidator Mr Daniel Woodhouse (of FTI Consulting) to be published on the FTI Consulting website and emailed to all former customers and creditors of Forex (at email addresses in the books and records of Forex, or as otherwise supplied to the liquidators).  The notice informed the addressees of the purpose and date of the final hearing of this application, and that orders might be made at the hearing that would impact their rights as creditors.  It also invited comment on the dividend application, and required the liquidators to report to the Court prior to the final hearing by affidavit on the outcome of the notice regime.

11 The hearing proceeded on 14 May 2026.  I was satisfied by affidavit evidence of Mr Woodhouse that notice of the hearing had been given in compliance with the orders.  Mr Woodhouse disclosed the number and nature of comments received from the former customers in response to the notice.

12 Apart from the liquidators, no person sought to be heard on the application.  ASIC neither consented to nor opposed the orders sought by the liquidators.  Again, the Court was left without a contradictor.

13 After the hearing, I made orders on the dividend application, with minor adjustments to the orders proposed.  I indicated I would publish short reasons, having regard to the number of creditors with an interest in this liquidation.

Relief sought

14 On this application the Court was asked to make directions that fall within three categories.  The first relates to the processes for dividend distribution having regard to the usual regulations that apply.

Orders modifying regulations

15 By the proposed orders the liquidators sought to achieve the following:

(a) modify the operation of certain time periods provided by the Corporations Regulations 2001 (Cth);

(b) provide for the manner in which former customers may update the position they took in relation to the adjudication regime, by making a new election as to the manner in which their claims are admitted or adjudicated;

(c) provide for the manner in which the liquidators will issue by email pre-populated electronic claim forms to former customers, such claim forms being tailored to the manner in which the customers previously engaged with the adjudication regime (annexures B, C, D, E and F to the orders);

(d) provide that the completion of claim forms (annexures G and H to the orders) by a former customer will be deemed to comply with the formal proof of debt regime;

(e) provide for the liquidators to issue a form of notice of declaration of dividend to admitted creditors which sets out that payments will be made by electronic funds transfer (annexure I to orders); and

(f) provide for payment of dividend by electronic fund transfer or as otherwise agreed with a creditor, rather than by cheque.

16 The following table, which formed part of the liquidators’ submissions (with minor editing) usefully sets out the timetable intended to be implemented and the relevant regulation as to which dispensation, modification or deemed compliance respectively was sought, and the liquidators’ comments.  The reference to orders is a reference to the orders made 14 May 2026 after the hearing and included in these reasons.

17 For the reasons expressed in Forex Capital Trading at [48]-[66], [85], I concluded that I had the power under s 90-15 to abridge or vary the process for adjudication of proofs of debt that was mandated by certain provisions of the Regulations.  Similarly, I consider that applying the same principles as to the scope of s 90-15, I have the power to extend or vary the process for declaring dividends as mandated by the Regulations specified by the provisions set out in the above table.

18 I recognise that the power under s 90-15 is not unlimited.  However, I consider that it encompasses orders that help to facilitate external administrations, and so to promote the purposes of the Corporations Act.  A broad approach to the section is consistent with the well-established principle that it is inappropriate to read provisions conferring jurisdiction or granting powers to a court by making implications or imposing limitations which are not found in the express words:  The Owners of the Ship 'Shin Kobe Maru' v Empire Shipping Company Inc (1994) 181 CLR 404 at 421; One T Development at [33]-[35].

19 The question then is whether the power should be exercised.

20 It is important to observe that in this case the parties whose rights are affected have been given due notice.

21 The extensions of time frames (orders 1(a) and (b)) were sought for practical reasons.  Mr Woodhouse deposed to the liquidators’ concerns that the standard time frames were insufficient having regard to the time that has elapsed since the original adjudication and election process; the complexities involved in the process; the need to ensure customers are provided with the greatest possible opportunity to substantiate their claims if they choose to do so; and the risk that to the extent adjudication is required, the process will take more that the usual two month period.  I also observe that in some scenarios the period of customer losses the subject of the adjudication regime has been extended for the purpose of the dividend regime, and both the liquidators and customers will benefit from a period of time that permits a consideration of the quantum of losses that might accordingly be adjusted in some cases.

22 As to the matters the subject of orders 1(c), (d), (f) and (g), similar orders were made in Forex Capital Trading (orders 1, 3, 4 and 5) and explained at [87]-[91] of those reasons, which I rely upon without repeating.  In short, the process for providing notices (pre-populated where appropriate) with an option to submit either a discounted adjudication form or online proof of debt form is a method by which the administrative burden on the liquidators is reduced. In those circumstances and having regard to the nature of the technical requirements, I considered the orders to be appropriate, and also considered it appropriate that the liquidators should be excused from compliance with those particular requirements so as to avoid a breach of the Regulations through implementation of the regime.

23 As to orders 1(e), (h) and (i), the relevant regulation requirements arise only in the context of a final dividend process, and so did not arise on the adjudication application.

24 Order 1(e) excuses compliance with reg 5.6.50, which otherwise requires a proof of debt to ‘contain detailed particulars of the debt or claim sought to be proved’.  The former customers’ claims based on Forex’s misleading or deceptive and unconscionable conduct are complex:  see Forex Capital Trading at [25]-[47].  The liquidators submitted that it would be unworkable to invite or expect former customers to provide detailed particulars of these claims where they are seeking to avail themselves of the proposed discounted claims under the regime proposed by the liquidators.  I accept that such a course would be counter-productive and undermine the efficiencies for both the customers and the liquidators which the regime seeks to achieve (and see [5] above).

25 Order 1(h) deems compliance with reg 5.6.67(3), which would otherwise require the declaration of the dividend to be made in accordance with Form 549. Form 549 states ‘and a cheque is attached for $..... calculated at that rate on your debt as admitted to rank for dividend’. Annexure I replaces the reference to a cheque with ‘you will receive an electronic funds transfer for the amount of $..... calculated at that rate on your debt’.  Similar modifications to a Form 549 have been made in other cases:  Quinlan, in the matter of Halifax Investment Services Pty Ltd (In liquidation) (No 4) [2019] FCA 604.  I consider such a modification to be uncontroversial in this day and age where cheques are inconvenient and rarely utilised.

26 Order 1(i) addresses the potential application of order 1(h) and the difficulty of making payments to creditors where there are no bank details:  Halifax Investment Services at [53]-[55].  Here, any concern about a lack of bank details or alternative payment method is also mitigated by the inclusion of the ‘confirmation of bank details’ at section 3 of annexure G.  I consider the ancillary order to be appropriate.

Direction regarding unclaimed money

27 Mr Woodhouse deposed to the fact that the liquidators hold an amount of approximately $1,700 in Forex’s ‘Client Money Account’ which represents amounts of less than $20 referrable to 1,437 former customers.  Despite attempts, the liquidators have been unable to locate all but 152 of these customers.  As to 130 of those 152 customers, the quantum of each claim was less than $1.  As to the other 22, each claim was in an amount of less than $20.

28 Forex formerly held an AFSL and the Client Money Account was the bank account in which it held money on trust for the benefit of customers as required by its licence and s 981B of the Corporations Act.  Regulation 7.8.03 of the Regulations prescribes how money in such an account is to be dealt with if a licensee ceases to hold its licence. Under reg 7.8.03(4), moneys held in such accounts are taken to be subject to a trust in favour of the person entitled to be paid from the account.  Reg 7.8.03(6) then provides for waterfall payments to various recipients (none of which is relevant here), concluding at reg 7.8.03(6)(e) to the effect that any remaining money is taken to be money payable to the licensee (so, in this case, Forex).  This regulation is said to apply despite bankruptcy laws or other laws relating to companies.

29 It is apparent that the regulation does not address what should occur where a payee cannot be located.  The liquidators made inquiries as to whether the money should be paid to the Victorian Office of State Revenue, but was informed that it will not accept the balance of the Client Money Account, as the individual amounts are less than $20 and therefore fall outside the definition of unclaimed money in s 3 of the Unclaimed Money Act 2008 (Vic).

30 In those circumstances, the liquidators sought a direction that they are justified in treating the unclaimed moneys as an asset of Forex to be distributed, together with the other realised assets, among creditors in accordance with the dividend regime envisaged by the orders.

31 The circumstances where the Court will make a judicial direction under s 90-15 are well known, and were summarised (for example) by Button J in Morgan, in the matter of Traditional Values Management Limited (in liq) [2024] FCA 74 at [26]-[31]; and by Goodman J in Livingstone, in the matter of St Hilliers Contracting Pty Ltd (administrators appointed) [2025] FCA 658 at [16].  I respectfully adopt without repeating those summaries.

32 In In re MF Global Australia Ltd (in liq) [2012] NSWSC 994, Black J comprehensively considered the operation of reg 7.8.03 (at [35] onwards) but primarily in the context of pooling of funds.  However, his Honour also addressed the treatment of accounts with small balances.  His Honour made a direction that the liquidators were justified in treating clients, in respect of each client account with a balance of $1 (or some other amount) or less, as having no entitlement to participate in a distribution from the relevant client service account (at [160]).  His Honour observed that (at [161]):

There are 980 client accounts with a GLV of $1 or less, totalling AUD $337.95 … The Plaintiffs point out that it is self-evident that the administration costs which would be incurred in processing the claims in respect of client accounts with a gross liquidation

value of less than $1 will far exceed their total value. It is therefore expedient to permit the Liquidators to ignore these claims. I would make a direction to that effect.

33 In the present case, the amount in issue ($1,700) is not significantly more and similar arguments as to efficiencies arise, particularly as steps to identify the majority of customers with an interest in the relevant account have been undertaken and have failed.  Even for a claim of $20, I accept that the administrative burden outweighs any benefit.

34 In my view, and consistent with the approach in MF Global, the interests of justice favour the making of the direction sought by the liquidators, particularly because:

(a) it is unclear how in such circumstances funds are to be dealt with under the Regulations, and particularly where the Unclaimed Money Act does not apply;

(b) the direction is consistent with the intention of reg 7.8.03(6)(e);

(c) the prejudice to any affected customer is, at worst, the loss of $20 which has been unclaimed for some years;

(d) the costs which would be incurred in otherwise dealing with the Client Money Account would exceed the value of funds held;

(e) the direction will hasten the finalisation of the liquidation; and

(f) the liquidators may otherwise be criticised for their handling of the funds, so it was appropriate for them to seek directions as to the proper course of conduct and be conferred with a level of protection.

Direction regarding use of Reserve Bank of Australia exchange rate

35 The liquidators have not yet formally calculated the amounts for proofs denominated in foreign currencies.  Relevantly, 74 claims included USD transactions.  The liquidators must undertake an exchange calculation for the final dividend process.  Section 554C(3) of the Corporations Act requires that the amount of debt or claim admissible to proof against the company be worked out by reference to the ‘opening carded on demand airmail buying rate in relation to the foreign currency available at the Commonwealth Bank of Australia on the relevant date’.

36 However, Mr Woodhouse deposed that inquiries on his behalf indicated that the Commonwealth Bank no longer publishes such rate.  Accordingly, the liquidators have where necessary converted foreign currency denominated transactions into AUD using the daily historical exchange rate published by the Reserve Bank of Australia.  The calculations have been undertaken but not yet relied upon for dividend purposes, but the liquidators seek to rely on those calculations in the future, subject to a direction that they are justified in doing so.

37 The liquidators submitted that, applying the same principles as to judicial directions referred to above (at [31]), it was appropriate that a direction be made that notwithstanding s  554C of the Corporations Act, the liquidators are justified in using the AUD:USD exchange rate published by the Reserve Bank of Australia on each day when calculating a customer’s net loss because:

(a) on the evidence, it is not possible for the liquidators to use the prescribed exchange rate;

(b) there is no discernible prejudice to creditors with the liquidators’ approach;

(c) the decision to use this exchange rate is not a purely commercial decision, but a legal one in which it is appropriate to seek the Court’s direction;

(d) the direction is sought to provide a level of protection to the liquidators and will avoid this issue being relitigated by former customers; and

(e) the costs caused by the need to recalculate these claims prior to the dividend distribution would be borne by all former customers and reduce the quantum of any dividend.

38 In the circumstances, I agreed that it was appropriate to make such a direction.

Other matters relevant to discretion

Delay

39 The liquidators also made submissions in relation to the delay between the adjudication process and the proposed declaration of a dividend.  Having regard to the litigation which was undertaken with Invesus, the settlement negotiations undertaken with the ATO and the very large number of customers with claims in the liquidation, I do not consider that either the failure to declare an interim dividend (having regard to the costs that would be incurred), or the overall period between the adjudication regime being given effect and the proposed payment of dividends, are matters that weigh against the exercise of my discretion to make the direction sought.  It is important that the liquidation now be brought to an end and the orders made on this application will assist in that end being met more efficiently.

Response of customers

40 Amongst the responses from customers the subject of the report provided to the Court (see [11] above) were a small number of express criticisms as to the apparent complexity of some of the information provided to customers by the liquidators.  I raised this issue with senior counsel during the hearing, and was assured that steps had been taken by the liquidators, amongst other things, to have a simple ‘frequently asked questions’ response readily available.  Staff would have ‘scripts’ for particular issues.  Staff would take steps to telephone customers where a personal phone call had been requested, rather than simply directing people to the website or providing email responses. I accept that such steps will assist customers who might have questions about the effect of the orders made.

Suppression order

41 Finally, at the case management hearing referred to at [10] above, a suppression order was made in relation to one of the five affidavits of Mr Woodhouse relied upon for the purpose of this application.  The relevant affidavit placed confidential material before the Court in the interests of disclosure which related to a litigation funding agreement.  I accepted that it was appropriate that the confidentiality of the material be maintained.  Accordingly, an order was made under s 37AF of the Federal Court of Australia Act 1976 (Cth) on the ground that it was necessary to prevent prejudice to the administration of justice that the material in the affidavit be kept confidential and prohibited from publication to third parties, subject to any further order of the Court.

Orders

42 Orders were made on 14 May 2026 accordingly.

Associate:

Dated:    20 May 2026