Saturday, October 1 2022

Rizzak Capital Pty Ltd holds AFS license no. 429966 since January 30, 2013, but the firm was far from a top broker in the local brokerage space.

Could ASIC ban CFD trading in Australia?

The Australian Securities and Investments Commission (ASIC) has canceled the Australian Financial Services License (AFS) of Rizzak Capital Pty Ltd (Rizzak Capital).

Rizzak Capital was a “leading independent brokerage in trading foreign exchange, contracts for differences and broadcast gaming products”, according to its own website which has since been shut down.

Australia’s financial watchdog says Rizzak Capital’s AFS license was revoked because the entity failed to meet the key person condition of its AFS license and failed to file its financial statements and opinions. audit for the fiscal years ended June 30, 2020 and June 30, 2021.

Rizzak Capital may ask the Administrative Appeals Tribunal to review ASIC’s decision, the regulator added.

Rizzak Capital Pty Ltd holds AFS license no. 429966 since January 30, 2013, but the firm was far from a top broker in the local brokerage space.

Sirius Financial Markets, an ASIC-licensed over-the-counter (OTC) derivatives provider trading as “Trade360”, recently relinquished its license following an investigation by the watchdog financial.

The company’s former executives, Jonathan Schneider and Oskar Pecyna, were sentenced to eight-year bans, preventing them from controlling an entity that conducts financial services business or from exercising any leadership or management role in relation with a financial services company.

Sirius Financial Markets operated under the ‘Trade360’ brand and was found to have engaged an offshore call centre, Toyga Media Ltd (Toyga), to source clients to trade high-risk contracts for difference (CFDs) and foreign margins. foreign exchange contract products issued by Sirius Financial.

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

ASIC Commissioner Danielle Press said: “ASIC’s investigation revealed consumer losses related to CFD trading, including an investor from Sirius Financial, who had limited knowledge of the market, losing over $400,000 after learning that CFDs were a safe investment.”

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