ASIC today announced that OTC derivatives provider Sirius Financial Markets Pty Ltd, trading as Trade360, will surrender its Australian Financial Services licence, following an investigation conducted by the regulator.
In addition, two of Sirius Financial’s former executives, Jonathan Schneider and Oskar Pecyna, were banned from controlling or managing a financial services business for eight years.
ASIC Commissioner Danielle Press said:
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.
According to ASIC, Toyga Media Ltd (Toyga), an off-shore call centre, acquired clients for Sirius Financial to trade in high-risk CFDs and margin forex contracts products. Call centre representatives convinced Sirius Financial clients to trade through pressure selling tactics. They also provided clients with personal advice when Sirius Financial was not licenced to do so. The regulator also found that the firm engaged in unconscionable conduct and conduct that was likely to mislead or deceive.