ASIC bans Bradford AI for four years for providing unlicensed FX trading services

The Australian Securities and Exchange Commission today announced imposing a four-year ban on Gregory Finerty, the sole director of Gold Coast company Bradford AI, from offering financial services.

According to the regulator’s findings, Finerty carried on a financial services business without an Australian financial services (AFS) licence and engaged in misleading and deceptive conduct. As a result, he was banned from controlling an entity that carries on a financial services business and performing any function involved in that area.

ASIC further detailed that Bradford AI leased an algorithmic trading program called Robot 1. From January 2020 to at least the end of December 2021 Finerty arranged his clients to trade foreign currency CFDs while the company did not hold a license for that. During that period, Bradford AI used the services of another Australia-based CFDs broker to provide the services to its clients.

ASIC ban

CFDs are leveraged derivative contracts and are regarded as a high-risk product. ASIC takes the regulation of offering such instruments very seriously and imposes heavy penalties on unlicensed CFD traders.

Additionally, the Australian regulator found that Finerty mislead and deceived his clients about the performance of Robot 1 and “directed or assisted” clients to mislead the CFD broker about their trading experience, as well.

ASIC determined that Finerty is not a “fit and proper person to provide financial services, is not adequately trained or competent to provide financial services, and is likely to contravene financial services law.”

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