Trade360 Dismissed From Australia Capital Market; Why?
The renowned Over-the-Counter (OTC) derivatives provider, Sirius Financial Markets Pty Ltd, allegedly surrendered its Australian Financial Services license. The Australian Securities and Investments Commission (ASIC) disclosed this information. ASIC thoroughly examined (OTC) derivatives providers, commonly operating under the brand Trade360.
The firm is in the process of closing up the doors in both retail and wholesale operations. It quoted 29 July 2022 as the final date to offer financial services in the region.
The regulatory persuasion on OTC derivatives providers found various license violations which triggered the expulsion.
ASIC’s investigation uncovered consumer losses from trading in CFDs. These included a Sirius Financial investor, who had limited knowledge of the market. They lost over $400,000 after being told CFDs were a safe investment, ASIC’s Commissioner, Danielle Press, noted.
To the report, the financial entity signed up an offshore call center, Toyga Media Ltd, to root clients who would engage in high-risk instrument trading, like margin for contracts and CFDs.
The call center used inappropriate strategies to engage clients, including; the use of pressure in selling the tactics. Moreover, the contracted body also offered financial advice, which was against license policy.
ASIC added that Sirius Financial was also allegedly engaging in unconscionable conduct and conduct that was likely to mislead or deceive.
Stroke Reaching The Staff
Beyond the revoking of a license, the Aussie regulator blocked two former Sirius Financial executives, Jonathan Schneider and Oskar Pecyna, for a period of eight years.
Hence, the two culprits will not execute their duties. They won’t be able to control any financial services business or hold any executive or management role in such companies up to the period mentioned.
The two involved themselves in license obligation breaches by Sirius. According to the regulator, they lacked competence and adequate training in controlling a financial services business.
In reaching these findings, ASIC found that both men failed to adequately perform their duties as responsible managers. Moreover, they lacked the necessary professionalism, integrity, judgment, and diligence to play a role in the management or control of a financial services provider, ASIC added.
