Trade360 surrenders ASIC license following pressure selling tactics

Rick Steves

Sirius Financial Markets, an ASIC-authorized over-the-counter (OTC) derivatives provider operating as ‘Trade360’, has surrendered its licence 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.

Trade360 client lost over $400,000

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.’

In addition to that, ASIC found that Sirius Financial failed to:

  • do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly
  • take reasonable steps to ensure that its representatives comply with the financial services laws
  • have in place adequate arrangements for the management of conflicts of interest

The banned executives were found to have been involved in the breaches while also not being adequately trained or competent to be involved in the control of a financial services business.

Sirius Financial has decided to surrender its license and wind down retail and wholesale operations. The firm will cease providing financial services on 29 July 2022.

Previous enforcement actions by ASIC against OTC derivates providers have resulted in a $75 million penalty against AGM Markets and a $20 million fine against Forex CT.

It was last year that ASIC’s restrictions on CFD products came into effect. In April 2022, ASIC extended its product intervention order for a further five years to 23 May 2027 after a successful year for retail traders.

Reduced CFD leverage available to retail clients and restrictions on certain product features and sales practices since March 2021 have improved the trading environment for retail users, as shown by a recent ASIC report.

The order imposes restrictions on CFDs issued to retail clients, including: leverage ratio limits ranging from 30:1 to 2:1; standardisation of margin-close out rules; negative balance protection; and prohibitions on offering or giving of certain inducements.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<