The Australian Securities and Investments Commission (ASIC) announced on Thursday that over-the-counter (OTC) derivatives provider Sirius Financial Markets Pty Ltd, which operates under the brand Trade360, has surrendered its Australian Financial Services license.
The company is now winding down its retail and wholesale operations from Australia and is aiming to cease offering financial services from 29 July 2022.
It came after a regulatory investigation against the OTC derivatives provider, surfacing several license violations.
“ASIC’s investigation uncovered concerning consumer losses from trading in CFDs, including a Sirius Financial investor, who had limited knowledge of the market, losing over $400,000 after being told CFDs were a safe investment,” said ASIC’s Commissioner, Danielle Press.
According to the regulatory investigation, the company engaged an offshore call center , Toyga Media Ltd, to source clients, who would be trading high-risk instruments like contracts for differences (CFDs) and margin forex contracts.
The call center used pressure selling tactics to persuade the clients to trade on the Sirius’ platform. They even provided clients with financial advice, but Sirius was not licensed for offering such services.
Additionally, ASIC stated that “Sirius Financial was also found to have engaged in unconscionable conduct and conduct that was likely to mislead or deceive.”
Ban on Executives
Moreover, the Aussie regulator banned two of Sirius Financial’s former executives, Jonathan Schneider and Oskar Pecyna, for eight years from controlling any financial services business or holding any executive or management role in such companies.
Both Schneider and Pecyna were involved in the license obligation breaches by Sirius. They were not adequately trained and not competent in controlling a financial services business, the regulator stated.
“In reaching these findings, ASIC found that both men failed to adequately perform their duties as responsible managers and lacked the necessary professionalism, integrity, judgement and diligence to play a role in the management or control of a financial services provider,” ASIC added.
