The firm had violated license requirements.
Additionally, two executives of the OTC derivatives operator were barred from the industry.
ASIC said on Thursday that over-the-counter (OTC) derivatives provider Sirius Financial Markets Pty Ltd, doing business as Trade360, had surrendered its Australian Financial Services license.
The firm is now winding down its retail and wholesale activities in Australia and plans to stop providing financial services on July 29, 2022.
Following a regulatory examination into the OTC derivatives provider, many licensing breaches were uncovered.
“ASIC's inquiry discovered serious consumer losses from trading in CFDs, including a Sirius Financial investor with no market expertise who lost over $400,000 despite being convinced CFDs were a secure investment,” stated Danielle Press, ASIC's Commissioner.
According to the regulatory inquiry, the business used an overseas contact center, Toyga Media Ltd., to recruit customers who would trade high-risk products, such as contracts for differences (CFDs) and margin FX contracts.
The contact center used high-pressure sales techniques to get customers to trade on the Sirius platform. They also offered consumers financial advice, despite the fact that Sirius was not authorized to provide such services.
In addition, according to ASIC, “Sirius Financial was found to have engaged in behavior that was unethical and likely to mislead or deceive.”
In addition, the Australian regulator prohibited two former Sirius Financial executives, Jonathan Schneider and Oskar Pecyna, from managing any financial services firm or having executive or managerial positions in such organizations for eight years.
Schneider and Pecyna were both implicated in the licensing violation violations committed by Sirius. The regulator concluded that they lacked proper training and were incapable of managing a financial services company.
“In reaching these conclusions, ASIC determined that both men failed to discharge their responsibilities as responsible managers and lacked the professionalism, integrity, judgment, and diligence required to play a role in the management or control of a financial services provider,” ASIC noted.
About Trade360
Trade360 is a CFD and FX broker that specializes on crowd trading, a feature that illustrates trader activity in response to current market circumstances. This analysis will focus on the primary elements of the Trade360 platform, including login, important features, rules, and the withdrawal procedure. Consider Trade360 as a possible broker.
Crowd Tech Ltd, a 2013-founded Cypriot investment corporation, owns Trade360. Trade360 is a licensed broker under the Cyprus Securities and Exchange Commission (CySEC).
Offering a variety of goods and trading platforms, the brokerage has tens of thousands of international customers. Trade360's partnership with Australian cricket star Steve Smith has also garnered headlines.
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