The Australian Securities and Investments Commission (ASIC) announced Thursday that Sirius Financial Markets Pty Ltd, an over-the-counter (OTC) derivatives provider operating under the Trade360 brand, has surrendered its Australian financial services license.
About Trade360
Trade360 is a CFD stockbroker that has been providing services since 2013. The company offers CFD trading in five asset classes – currency pairs, stocks, stock indices, commodities (metals and energy products), and ETFs. Trading in cryptocurrency assets is available only upon special request. Trade360 is a global brand that unites three divisions: CrowdTech Ltd. (Cyprus), Sirius Financial Markets Pty Ltd. (Australia), and ST Services Ltd. (Marshall Islands). The regulators are CySEC (Cyprus Securities and Exchange Commission) and ASIC (Australian Securities and Investments Commission).
Investigation and Results
Earlier this year, ASIC announced a regulatory investigation into Trade360. According to the regulatory investigation, the company hired an offshore call center, Toyga Media Ltd, to find clients who would trade high-risk instruments such as contracts for difference (CFDs) and foreign exchange margin contracts.
When trying to persuade customers to trade on Sirius' platform, the call center used pressure selling techniques. Even though Sirius lacked the necessary licenses, they gave clients financial advice. ASIC also discovered that the company engaged in unethical behavior and behavior that was likely to mislead or defraud.
Following ASICs investigation, Sirius Financial will revoke its license, shut down its retail and wholesale businesses, and stop offering financial services on July 29, 2022. As of now, the company's website has been suspended.
Bans on Executives
In addition, the Australian regulators announced that two former Sirius Financial executives, Jonathan Schneider and Oskar Pecyna, are prohibited from controlling any financial services business or holding any executive or management position in such companies for eight years.
Schneider and Pecyna both participated in Sirius' violations of its licensing obligations. They did not have adequate training or the ability to control financial services businesses, the regulator said.
ASIC added: “In reaching these conclusions, ASIC found that neither man adequately performed his duties as a responsible manager and lacked the necessary professionalism, integrity, judgment and diligence to function in the management or control of a financial services provider.”
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