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Trade360 operator surrenders licence, ASIC bans former directors LeapRate

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ASIC today announced that OTC derivatives provider Sirius Financial Markets Pty Ltd, trading as Trade360, will surrender its Australian Financial Services licence, following an investigation conducted by the regulator.

In addition, two of Sirius Financial’s former executives, Jonathan Schneider and Oskar Pecyna, were banned from controlling or managing a financial services business for eight years.

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.

According to ASIC, Toyga Media Ltd (Toyga), an off-shore call centre, acquired clients for Sirius Financial to trade in high-risk CFDs and margin forex contracts products. Call centre representatives convinced Sirius Financial clients to trade through pressure selling tactics. They also provided clients with personal advice when Sirius Financial was not licenced to do so. The regulator also found that the firm engaged in unconscionable conduct and conduct that was likely to mislead or deceive.

ASIC ban

The Aussie watchdog discovered that Sirius Financial has breached its licence obligations failing to adequately address Toyga’s conduct.

Furthermore, ASIC found that Pecyna and Schneider were involved in Sirius Financial’s breaches. Moreover, ASIC deemed them not “adequately trained or competent”. ASIC stated that the two former directors lacked professionalism and integrity for their management roles.

Following the investigation, Sirius Financial will surrender its licence and close its retail and wholesale operations on 29 July 2022.

ASIC has taken action against OTC derivative providers in the past. AGM Markets was previously ordered to pay a $75 million penalty, Forex CT was slapped with a $20 million penalty for various breaches.

In April, ASIC extended its product intervention order for retail issuance and distribution of CFDs for a further five years to 23 May 2027, reducing CFD leverage available to retail clients and strengthening protections.

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