WIKIFX REPORT: OTC trader Trade360 surrenders license, two executives banned

ASIC announced today that the two former executives, Jonathan Schneider and Oskar Pecyna had been banned from controlling any entity that carries on a financial services business for eight years.

Commenting on the situation, ASIC Commissioner Danielle Press said, “ASICs 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, Sirius Financial engaged an off-shore call centre, 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.

ASICs investigation found the call centre representatives persuaded Sirius Financial clients to trade using pressure selling tactics and provided clients with personal advice when Sirius Financial was not licenced to do so. Sirius Financial was also found to have engaged in unconscionable conduct and conduct that was likely to mislead or deceive.

ASIC‘s investigation also found that, in failing to take adequate steps to address Toyga’s conduct, Sirius Financial has breached its licence obligations 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.

In banning Pecyna and Schneider, ASIC found both men were involved in Sirius Financials breaches of its licence obligations and were not adequately trained or competent to be involved in the control of a financial services business. In reaching these findings, ASIC found that both men failed to adequately perform their duties as responsible managers and lacked the necessary professionalism, integrity, judgement and diligence to play a role in the management or control of a financial services provider.

Also following ASICs investigation, Sirius Financial will surrender its licence and wind down retail and wholesale operations and will cease providing financial services on 29 July 2022.