FX and CFD broker Rizzak Capital loses AFS license in Australia

Rick Steves

Rizzak Capital Pty Ltd has held AFS licence no. 429966 since 30 January 2013, but the firm was far from being a prominent broker within the local brokerage space.

The Australian Securities and Investments Commission (ASIC) has canceled the Australian financial services (AFS) license of Rizzak Capital Pty Ltd (Rizzak Capital).

Rizzak Capital was a “leading independent broker in the trading of foreign exchange, contract for differences and spread game products”, according to its own website which has since been shut down.

The Australian financial watchdog stated the Rizzak Capital’s AFS license was canceled because the entity failed to comply with the key person condition of its AFS licence and failed to lodge its financial statements and audit opinions for the financial years ended 30 June 2020 and 30 June 2021.

Rizzak Capital may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision, the regulator added.

Rizzak Capital Pty Ltd has held AFS licence no. 429966 since 30 January 2013, but the firm was far from being a prominent broker within the local brokerage space.

Trade360 lost AFS license after pressure selling tactics

Sirius Financial Markets, an ASIC-authorized over-the-counter (OTC) derivatives provider operating as ‘Trade360’, has recently surrendered its license following an investigation by the financial watchdog.

The firm’s former executives, Jonathan Schneider and Oskar Pecyna, were handed eight-year bans, restricting them from controlling an entity that carries on a financial services business or performing any executive or management role in relation to a financial services business.

Sirius Financial Markets operated with the brand ‘Trade360’ and was found to have engaged an off-shore call center, Toyga Media Ltd (Toyga), to source clients to trade in high-risk contracts-for-difference (CFDs) and margin foreign exchange contracts products issued by Sirius Financial.

According to ASIC’s investigation, Toyga persuaded clients to trade using pressure selling tactics and provided clients with personal advice when Sirius Financial was not licensed to do so.

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.’

  • Read this next

    Web3

    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    Executive Moves

    GCEX appoints Ignacio Corral and Helen Man to UK operation

    GCEX has announced the appointment of Ignacio Corral and Helen Man to its UK FCA-regulated operation based in London as the firm further expands its global business on account of increasing demand for its digital prime brokerage services.

    Retail FX, Uncategorized

    Public.com to shut down UK operation after eight months

    Public.com’s UK withdrawal reflects broader market dynamics, where increased competition among retail investing platforms, including newcomers like Robinhood and Webull, pressures companies to consolidate their efforts in their most profitable or strategic markets.

    Industry News

    UK FCA commits to swifter enforcement actions

    “Reducing and preventing serious harm is a cornerstone of our strategy. By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time.”

    Digital Assets

    Ultimate Crypto Trading Software: Zent Launches Innovative Platform For All Institutional Needs

    Zent, a pioneering software provider for financial institutions, has unveiled its all-in-one platform for high-speed crypto trading across popular exchanges. The “ultimate tool tailored to institutional teams and trading volumes” offers distinct advantages, eliminating hurdles like delays and market impact.

    Digital Assets

    OKX officially launches Turkish crypto trading platform

    “With a crypto adoption rate close to 50%, Türkiye represents a very dynamic and promising market for the industry as it continues to develop. The population’s high level of engagement and understanding of digital assets makes it an ideal environment for OKX, and we’re strongly committed to helping continue to grow this already vibrant ecosystem.”

    Retail FX

    ZA Bank launches US stock trading service ZA Invest

    ZA Invest provides access to over 6,000 US stocks and 3,000 ETFs, and a promotional USD savings interest rate of up to 10% p.a. for eligible users.

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    <